Health Winners & Losers: Genentech - TheStreet

Enter earnings. Health stocks outperformed the broader markets Tuesday after getting the first second-quarter rehashes from a couple of big names.

Post market-close Monday

Genentech

( DNA) missed on earnings per share but posted

impressive sales numbers

. The company reported adjusted profit of 82 cents a share on revenue of $3.2 billion. Wall Street expected of 86 cents a share on revenue of $3.23 billion, according to Thomson Reuters.

The company reported U.S. sales of $650 million and $651 million for lead drugs Avastin and Rituxan, surpassing consensus targets of $645 million and $634 million, respectively. Genentech also upped its full-year 2008 non-GAAP earnings guidance to a range of $3.40 to $3.50 a share, up from a previous range of $3.35 to $3.45.

Genentech shares were traded up 5.2%, or $3.91, to $79.30. The company's Rituxan partner,

Biogen Idec

(BIIB) - Get Report

, saw its shares rise $2.48, or 4.1%, to $63.50.

Genentech and Biogen Idec are both components of the Amex biotechnology index, which was up an impressive 2.9% at 781.62.

Meanwhile,

Johnson & Johnson

(JNJ) - Get Report

aired its earnings

Tuesday morning. During the quarter, currency benefit and growth in medical device and consumer sales helped to offset falling pharmaceutical sales.

Factoring out an R&D charge of $40 million tied to its Amic acquisition, the company said it earned $3.4 billion, or $1.18 a share. Sales increased 8.7% year over year to $16.5 billion. Analysts, on average, were looking for earnings of $1.12 a share on revenue of $16 billion, according to Thomson Reuters.

Looking ahead, J&J upped its earnings guidance for the full year to $4.45 to $4.50 a share, factoring out one-time charges. Shares were up $1.41, or 2.1%, at $67.82.

In news unrelated to earnings,

ViroPharma

(VPHM)

said Tuesday that it will

buy Lev Pharmaceuticals

(LEVP)

for $442.9 million upfront, or $2.75 a share ($2.25 in cash and 50 cents in ViroPharma common stock). The company could pay an additional $1 a share based on certain regulatory and commercial milestones -- bringing the deal's potential value to $617.5 million. Both boards have approved the transaction, which is expected to close by the end of 2008. ViroPharma shares fell $1.93, or 15.4%, to $10.61.

In analyst actions, Lehman Brothers boosted its rating for

Schering-Plough

( SGP) to overweight from equal weight and raised its price target to $27 from $22. Shares were traded up 95 cents, or 4.4%, to $22.33.

On Wednesday, look for earnings from

Abbott Laboratories

(ABT) - Get Report

and

St. Jude Medical

(STJ)

. Wall Street is looking for earnings of 79 cents a share on revenue of $7.2 billion from Abbott, and profit of 55 cents a share on revenue of roughly $1.06 billion from St. Jude.