Motorola ( MOT) stumbled after the Schaumburg, Ill., wireless company missed third-quarter sales and handset shipment targets. The company made $727 million, or 29 cents a share, from continuing operations for the quarter ended Sept. 30, down from the year-ago $1.74 billion, or 68 cents a share. The latest quarter included 5 cents a share in one-time charges, including 2 cents a share of stock-compensation expense. Excluding those figures, latest-quarter earnings were 34 cents a share. Sales rose 17% from a year ago to $10.6 billion. Wall Street was looking for a 34-cent profit on revenue of $11.07 billion. The company said it shipped 53.7 million wireless handsets during the quarter, missing Wall Street's 54 million-unit target. The company pointed to a big drop-off in the Nextel iDen two-way radio phones as part of the reason for the third-quarter sales slump. Motorola says dual mode phones for Sprint Nextel customers will be available later this quarter. Motorola expects fourth-quarter sales to fall somewhere in a range between $11.8 billion and $12.1 billion. Shares fell $1.93, or 7.8%, to $22.92. Healthways ( HWAY) surged 12% after the Nashville, Tenn.-based disease management company sharply raised 2007 guidance. The company made $14 million, or 38 cents a share, for the fourth quarter ended Aug. 31, up from the year-ago $8.3 million, or 23 cents a share. Revenue rose to $114.9 million from $87.6 million a year earlier.
"We are very pleased with the strong performance of our core commercial business for the fourth quarter, which was above expectations and which drove substantial profitable growth for the entire company for the quarter," CEO Ben Leedle said. "We attribute this performance to increasing business with existing customers, the addition of new customers, the launch of new programs and services and the resulting increased operating leverage." The company said it expects to make $1.44 to $1.61 a share for fiscal 2007 on revenue of around $684 million. Analysts were looking for $1.48 a share on revenue of $512 million. Shares were gaining $4.25, or 10.8%, to $43.56. Charles & Colvard ( CTHR - Get Report) sank in after-hours trading after the Morrisville, N.C.-based moissanite jewelry maker reported flat third-quarter earnings. The company posted income of $2.2 million, or 12 cents a share, essentially matching the year-ago results. Wall Street was looking for the company to report earnings of 14 cents a share. Sales increased 7% to $12.1 million. The company said share and per share data reflected the effect of the 5% stock dividend distributed on July 15, 2005, and the stock split of one share for every four shares, effected in the form of a 25% stock dividend distributed Jan. 30. Shares slipped 43 cents, or 3.6%, to $11.50. Illumina ( ILMN - Get Report) soared after the genetic testing company blew out third-quarter estimates and guided to more of the same for the fourth quarter. The San Diego-based genotyper made $16 million, or 32 cents a share, for the quarter ended Oct. 1, reversing the year-ago loss of $1.4 million, or 3 cents a share. Analysts surveyed by Thomson Financial were looking for a 16-cent profit. Sales rose 174% from a year ago and 29% sequentially, hitting $53.5 million. Analysts were looking for $47 million. For the fourth quarter, Illumina expects to make at least 31 cents a share on sales of around $56 million. Analysts were looking for 17 cents on $50 million. Shares were trading up $5.11, or 14%, to $41.75.
Endo Pharmaceuticals Holdings ( ENDP) plummeted after the company warned of less-stringent government recommendations for establishing the bioequivalence -- a condition in which different formulations of the same drug or chemical are equally absorbed when taken into the body -- of a generic version of its top-selling pain patch, Lidoderm. The company said that the Office of Generic Drugs has recommended that a bioequivalence study for a potential generic version of Lidoderm should characterize the pharmacokinetic (a process by which a drug is absorbed, distributed, metabolized, and eliminated by the body) profile of the drug. The OGD also recommends a skin irritation/sensitivity study. However, Endo said it believes that generics should be required to demonstrate bioequivalence through a comparative clinical efficacy study, which the company maintains is consistent with the OGD's past practices for a topical product. Endo said it has already expressed this view to the OGD, and the discussions are ongoing. Lidoderm, or lidocaine in its generic form, is a topical patch to treat the pain associated with post-herpetic neuralgia, a condition resulting from nerve damage caused by shingles. The company said earlier this month that it expects Lidoderm sales to total $530 million to $540 million this year. Endo noted that it holds five patents related to Lidoderm, the last of which is scheduled to expire in 2015. The company said it will vigorously assert these patents against any generic challenge. Shares tumbled $5.06, or 14.92%, to $28.85.