Health Stocks in Motion

FoxHollow runs.
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Shares of

FoxHollow Technologies

(FOXH)

were among the best-performing health-related stocks Thursday, rising 18% after the company posted second-quarter results that topped Wall Street forecasts.

The company, which makes minimally invasive plaque excision devices, reported a loss of $3.4 million, or 15 cents a share, on sales of $28.7 million. Results included stock-based compensation expenses of $1.9 million. Analysts polled by Thomson First Call were expecting a loss of 23 cents a share on sales of $25.3 million. Gross margins came in at 69%, up from 59% during the first quarter, and up from 19% a year ago.

Looking ahead, FoxHollow forecast a third-quarter loss of $500,000 to $1 million on sales of $32 million to $34 million. Analysts are expecting a loss of $3.1 million, or 13 cents a share, on sales of $28 million. During the fourth quarter, the company expects to be profitable. Analysts were expecting a loss of 5 cents a share. For the full year, the company now expects a loss of $5.5 million to $7 million, lower than previous guidance of $8 million to $10 million. Sales are now expected to be between $120 million and $125 million, well above previous guidance of $99 million to $105 million. Analysts had been expecting a loss of $16.4 million, or 72 cents a share, on sales of $106.1 million. Shares were trading up $7.76 to $51.35.

Orchid Cellmark

(ORCH)

fell 14% after the company posted disappointing second-quarter results and cut its full-year sales outlook. The provider of identity DNA testing services reported a loss of $1.8 million, or 7 cents a share, on sales of $15.8 million. Analysts were expecting a loss of 2 cents a share on sales of $18.3 million. A year ago the company reported a loss of $2.1 million, or 10 cents a share, on sales of $15 million. Year-ago results included a loss of 2 cents a share from discontinued operations. Looking ahead, Orchid Cellmark now expects 2005 sales of $72 million to $75 million, down from previous guidance of $75 million to $78 million. Average gross margin is now expected to be about 44%, down from earlier guidance of 47%. Analysts are expecting earnings of 6 cents a share on sales of $77.2 million. Shares were trading down $1.39 to $8.85.

Shares of

Advanced Neuromodulation Systems

(ANSI)

rose 18% after the company posted second-quarter results that were better than expected. The medical-device maker reported earnings of $5.1 million, or 25 cents a share, on sales of $38.7 million. Analysts were expecting earnings of 22 cents a share on sales of $34.4 million. A year ago the company earned $4.3 million, or 21 cents a share, on sales of $30.5 million. Looking ahead, ANSI backed its 2005 sales guidance of $145 million and upped its earnings guidance to $3.54 to $3.57 a share, up from $3.49 to $3.52 a share. Shares were trading up $7.51 to $48.91.

Alcon

(ACL)

rose 5% after the eye care-products company posted second-quarter results that topped expectations. The company, which is majority owned by Switzerland-based

Nestle

, reported earnings of $325 million, or $1.04 a share, on sales of $1.17 billion. Analysts were expecting earnings of 93 cents a share on sales of $1.15 billion. A year ago the company reported adjusted earnings of $241.6 million, or 78 cents a share, on sales of $1.04 billion. Looking ahead, Alcon forecast 2005 earnings of $3.40 to $3.45 a share on sales of $4.35 billion to $4.4 billion. Analysts are expecting earnings of $3.29 a share on sales of $4.39 billion. Shares were trading up $6.06 to $119.06.

Shares of

eDiets.com

(DIET)

rose 28% after the company swung to a second-quarter profit and posted a 32% jump in sales. The company, which operates a diet and fitness Web site, reported a profit of $1.3 million, or 6 cents a share, on sales of $15.1 million. A year ago the company posted a loss of $5.5 million, or 27 cents a share, on sales of $11.4 million. Looking ahead, the company forecast 2005 sales of $53 million to $54.5 million, up 17% to 20% from a year ago. The company also expects to be profitable for the year. Shares were trading up $1.07 to $4.90.

Other health-care volume movers included

Pfizer

(PFE) - Get Report

, up 7 cents to $26.77;

Genzyme

(GENZ)

, up $3.87 to $74.37;

Millennium Pharmaceuticals

(MLNM)

, down 59 cents to $10.50;

Elan

(ELN)

, down 41 cents to $7.58;

Ivax

(IVX)

, unchanged at $25.45;

IMS Health

(RX)

, up 9 cents to $27.47;

UnitedHealth Group

(UNH) - Get Report

, up $1.73 to $53.15;

Amgen

(AMGN) - Get Report

, down 27 cents to $81.01;

Teva Pharmaceutical

(TEVA) - Get Report

, up 1 cent $31.94;

Johnson & Johnson

(JNJ) - Get Report

, up 10 cents to $64.64;

Merck

(MRK) - Get Report

, up 8 cents to $31.30; and

Schering-Plough

(SGP)

, up 9 cents to $20.99.