Shares of Serologicals ( SERO) were among the worst-performing health-related stocks Friday, falling 12% after the provider of biological products posted lower-than-expected third-quarter sales and cut its 2005 guidance. The company reported third-quarter earnings of $7.7 million, or 20 cents a share, on sales of $67 million. Excluding items, the company would have earned $10.5 million, or 27 cents a share. Analysts polled by Thomson First Call were expecting earnings of 27 cents a share on sales of $72.4 million. A year earlier, Serologicals earned $5.7 million, or 19 cents a share, on sales of $46.3 million. On an adjusted basis, which excludes items, the company would have earned $6.2 million, or 20 cents a share, in the year-ago period. Serologicals cuts its full-year adjusted earnings forecast to 92 cents to 95 cents a share from a prior projection of 95 cents to $1. The company now sees 2005 sales of $265 million to $270 million, down from its earlier projection of $275 million to $285 million. Analysts had projected earnings of 96 cents a share on sales of $280 million. Shares were trading down $2.58 to $19.63. Invitrogen ( IVGN) fell 12% after the company posted third-quarter results that missed expectations by a wide margin and trimmed its full-year guidance. Invitrogen earned $23.9 million, or 42 cents a share, on sales of $289.6 million, for the third quarter. Excluding items, the company would have earned $46.7 million, or 80 cents a share. Analysts expected earnings of 88 cents a share and sales of $307.2 million, A year earlier, the company reported third-quarter adjusted earnings of $43 million, or 76 cents a share, on sales of $256.3 million. In response to its recent third-quarter results, Invitrogen said "continued softness at our BioReliance unit, coupled with the timing of media orders to large biomanufacturing accounts, made the third quarter a difficult period."
Invitrogen now expects full-year adjusted earnings of $3.42 to $3.45 a share, down from its earlier forecast of $3.50 to $3.53 a share. Sales, meanwhile, are still expected to range from $1.19 billion to $1.195 billion. Analysts' estimates call for earnings of $3.52 a share on sales of $1.2 billion. Shares were trading down $8.43 to $62.35. Shares of Bristol-Myers Squibb ( BMY) fell 3% after the drugmaker posted third-quarter earnings that fell short of expectations and lowered its full-year guidance. The company earned $964 million, or 49 cents a share, up from $758 million, or 38 cents a share, a year earlier. Excluding items, Bristol-Myers would have earned 31 cents a share, 2 cents short of analysts' estimates. Sales fell to $4.77 billion from $4.78 billion, missing Wall Street's projection of $4.9 billion. For the full year, Bristol-Myers now expects earnings, before items, to be in the middle of its previous projected range of $1.35 to $1.45 a share. Previously, the company earnings would be at the upper end of the range. Analysts see earnings of $1.44 a share. Shares fell 70 cents to $20.97. Shares of Mylan Laboratories ( MYL) dropped 15% after the generic-drug maker posted second-quarter results that fell below expectations. The company earned $35.8 million, or 16 cents a share, on sales of $298 million, for the second quarter ended Sept. 30. Excluding items, the company would have earned 22 cents a share. Analysts were expecting earnings of 24 cents a share on sales of $317.1 million. In the same period last year, Mylan earned $48.7 million, or 18 cents a share, on sales of $307 million. Mylan said the sales decline was due to increased competition and unfavorable pricing. Despite the second-quarter shortfall, Mylan still expects full-year adjusted earnings of 92 cents to $1.15 a share. Analysts, on average, project earnings of $1.03 a share. Mylan continues to expect fiscal 2007 adjusted earnings of $1.20 to $1.74 a share, in line with the $1.26 a share that analysts are expecting. Mylan shares were down $3.17 to $18.44.
Despite posting third-quarter earnings that fell short of expectations and cutting its full-year guidance, Cambrex ( CBM) was recently trading up about 2%. The company posted a small loss of $48,000, or less than a penny a share, on sales of $104.5 million. Excluding a reserve of $1.3 million, or 5 cents a share, the company would have reported a profit of 5 cents a share. Analysts expected earnings of 14 cents a share. A year ago, the company posted a loss of $45.1 million, or $1.72 a share, on sales of $99.3 million. Looking ahead, Cambrex now expects full-year earnings from continuing operations of 55 cents to 65 cents a share on sales growth of 1% to 3%. Previously, the company said that earnings would be between 85 cents and 95 cents a share on sales growth of 3% to 6%. "Guidance is being revised primarily due to delays in several early stage biopharma projects, currently under development agreements and expected to be completed in 2006, and lower revenues from new business that was expected to be closed in 2005," the company said. Analysts had forecast 2005 earnings of 73 cents a share. Shares rose 45 cents to $18.68. Other health care volume movers included Pfizer ( PFE), up 25 cents to $21.35; Novavax ( NVAX), down 21 cents to $3.79; Johnson & Johnson ( JNJ), up 83 cents to $62.27; Teva Pharmaceutical ( TEVA), down 51 cents to $37.32; Amgen ( AMGN), up $1.90 to $75.45; Kinetic Concepts ( KCI), down $6.06 to $35.10; Merck ( MRK), up 50 cents to $27.42; and Schering-Plough ( SGP), up 10 cents to $20.27.