Stocks React to Earnings, Mergers, and Industry Developments

Strategic Insights -

Shares of Alkermes Inc. (ALKS) edged up 6 cents in late trading after the company reported favorable results from its Phase III clinical study of alcohol-dependency treatment Vivitrex. The treatment showed a significant reduction in the median number of heavy drinking days in alcoholic patients, from 19 days a month to just three days a month. Meanwhile, International Business Machines Corp. (IBM) lost 0.6% after announcing it would book stock options as expenses and restate its financials. NIC Inc. (EGOV) gained 8% after receiving a one-year contract to build a government web portal for South Carolina.

Key Takeaways:

  • Alkermes Inc. reported positive results from its Phase III clinical study of Vivitrex, showing a significant reduction in heavy drinking days in alcoholic patients.
  • The study was published in the Journal of the American Medical Association and demonstrated the efficacy of Vivitrex in treating alcohol dependence.
  • International Business Machines Corp. (IBM) will begin booking stock options as expenses and restate its financials, which may impact earnings.
  • NIC Inc. (EGOV) received a one-year contract to build a government web portal for the state of South Carolina, raising its revenue forecast for the year.
  • Qwest Communications International Inc. (Q) gave MCI Inc. (MCIP) until noon on Wednesday to publicly declare its latest offer superior to Verizon Communications Inc.'s (VZ) accepted bid for MCI.

Statistics:

  • 6 cents - The increase in Alkermes Inc.'s (ALKS) stock price in late trading.
  • 19 days a month - The median number of heavy drinking days in alcoholic patients before treatment with Vivitrex.
  • 3 days a month - The median number of heavy drinking days in alcoholic patients with Vivitrex treatment.
  • 0.6% - The percentage decrease in International Business Machines Corp.'s (IBM) stock price.
  • $8.43 billion - The previously stated earnings of International Business Machines Corp. (IBM) before restatement.
  • $4.93 a share - The previously stated earnings per share of International Business Machines Corp. (IBM) before restatement.
  • $14.2 million to $14.6 million - The estimated first-quarter revenue of NIC Inc. (EGOV).
  • $59.1 million to $60.7 million - The updated revenue forecast of NIC Inc. (EGOV) for the year.
  • 4 cents - The gain in MCI Inc.'s (MCIP) stock price.

Sources:

  • Dow Jones Commodities News Select via Comtex (Apr 05, 2005)
  • Journal of the American Medical Association (publication date not specified)
  • International Business Machines Corp. (IBM) press release (Apr 05, 2005)
  • NIC Inc. (EGOV) press release (Apr 05, 2005)
  • Qwest Communications International Inc. (Q) press release (Apr 05, 2005)
  • MCI Inc. (MCIP) press release (Apr 05, 2005)
  • Verizon Communications Inc. (VZ) press release (Apr 05, 2005)