Updated from 2:02 p.m. EDT
Some companies' weak earnings were balanced by others' strong quarterly results, leaving health stocks largely flat on Tuesday.
Medical device manufacturer
shares slid 13.1% after the company reported disappointing first-quarter earnings. The company reported first-quarter revenue of $114.9 million, a 39% increase from the $82.6 million in revenue it reported in the same quarter last year. However, quarterly net income was $4 million, or 17 cents a share, compared to $6 million, or 26 cents a share, in the first quarter of 2006. The Thomson Financial consensus target was 31 cents a share on revenue of $114 million for the period. Shares fell $5.24 to $34.75 on Monday.
saw its shares sink 7.2%, following a disappointing earnings report. The company had a net loss of $17 million, or 48 cents a share, compared with a loss of $11.3 million, or 37 cents a share, in the year-over-year quarter. The Thomson Financial consensus targeted a loss of $15.7 million, or 43 cents a share. Shares dropped 99 cents to $12.77.
However, not everyone suffered poor earnings.
reported that it met analysts' expectations with a net first-quarter loss of $8.4 million, or 14 cents a share, compared to a loss of $7.1 million, or 13 cents a share, in the year-ago quarter. Shares were up 18 cents, or 3.1%, to $6.03.
Mediware Information Systems
rose 5 cents ealier in the day but closed down 2 cents, or 0.2%, to $8.34, after reporting solid earnings and introducing new software. The company reported revenue of $11 million for its third quarter ended March 31, an 11% increase compared to $10 million in the year-ago period. It reported net income of $831,000, or 10 cents a share, compared to $632,000, or 8 cents a share, in the year-ago quarter. Mediware also unveiled MediREC, an automated product that collects, displays and documents patient medication information.
Analysts' reactions to earnings reports earlier in the week also moved some health care stocks.
Medical device company
fell $2.12, or 6.4%, to $31.03 after being downgraded by Needham & Co. The firm changed its rating for Viasys to hold from buy on Tuesday, after the company reported a loss on Monday, after the markets closed.
Obagi Medical Products
climbed $1.58, or 10.7%, to $16.32, after Robert Baird and Co. upgraded the stock to outperform from neutral on Tuesday. The company reported strong quarterly results on Monday.
Biotechnology Index, which includes both Allos Therapeutics and Momenta Pharma, was down 4.95, or 0.6%.