The Day's Winners
Pharmaceutical benefits company
( CMX) added 7% to $13.80 after saying it earned $69.2 million, or 27 cents a share, in the second quarter, up from $39 million, or 16 cents a share, a year ago. Revenue rose to $1.63 billion from $1.37 billion. The results beat the consensus estimate of 25 cents. For the full year, the company forecast earnings of $1.06 to $1.08, ahead of its previous guidance.
tacked on 2% to $40.30 after posting second-quarter profit growth on higher demand for home loans. The company earned $191 million, or $1.48 a share, up from $123 million, or $1 a share, a year ago. Analysts had expected $1.35. Looking ahead, the company said it will earn between $1.55 and $1.65 a share in the third and fourth quarters, respectively, both of which would be ahead of estimates.
moved up 1.2% to $41.53 after Morgan Stanley upgraded the stock to overweight from equal-weight. The firm said the company's long-term fundamentals are positive and it has an attractive valuation, adding that concerns over the company's mortgage business are overblown.
climbed 7% to $18.03 on a Merrill Lynch upgrade after the company reported its second-quarter results. NPS lost $21.1 million, or 70 cents a share, compared with a loss of $16.2 million, or 54 cents a share, a year ago. Analysts had been looking for a loss of 83 cents. Revenue was up to $1.1 million from $491,000 last year. The company also said it has procured additional supplies of Preos to supply all of the patients currently involved in its clinical trials. Merrill Lynch upgraded the stock to near-term strong buy from buy on the news.
The Day's Losers
( KEA) fell 11% to $8.08 on a downgrade from SG Cowen to underperform from neutral. The firm said Keane's margins have eroded for a third consecutive quarter, and the company forecast a further decline in the second half. On Tuedsay, the technology consulting firm said its second-quarter profits fell to $5.5 million, or 7 cents a share, from $6.7 million, or 10 cents a share, while revenue was up to $226 million from $197 million. Keane projected third-quarter earnings of 8 cents to 10 cents a share on revenue of $210 million to $220 million. Cowen said it plans to lower its estimates for the company significantly.
Martha Stewart Living Omnimedia
was losing 8% to $9.20 after lowering its outlook for the third quarter and the full year. The company said uncertainty relating to the investigation of Martha Stewart's
stock sale has started to hurt the business. The company now expects third-quarter earnings of 6 cents to 7 cents. Analysts had been looking for 15 cents. For the full year, the company said it could not offer specific guidance, but its results will not meet the previous forecast of 53 cents. In the second quarter, Martha Stewart earned 16 cents a share, a penny ahead of the consensus estimate, on revenue growth of 16%.
( OPWV) dropped 20% to $1.13 after the company warned that market difficulty would continue for the next four to six quarters. The company reported a fourth-quarter loss in line with estimates, but cautioned that it expects wireless operators to cut back spending. The company expects a cash burn of $25 million to $30 million in the next quarter, up from just $3.4 million in the fourth quarter. Piper Jaffray cut its 12-month price target on the stock to $2 from $3 on the news.
XM Satellite Radio
( XMSR) shed 3% to $3.87 on a Credit Suisse First Boston downgrade following the company's earnings release. XM said it lost $122.4 million, or $1.38 a share, compared to a loss of $44.3 million, or 76 cents a share, a year ago. Analysts had expected a loss of $1.30 a share. The company's subscriber count was up 79% over the prior quarter. CSFB cut its rating on the stock to hold from buy.