Stocks Rise and Fall on Earnings and Guidance Reports

Strategic Insights -

Jul 14, 2005 saw a mixed bag of stock performances as several companies reported their earnings and guidance, causing significant fluctuations in the market. General Motors Corporation, Taser International Inc., and Genzyme Corporation were among those that saw their stocks rise after reporting positive results. On the other hand, Allscripts Healthcare Solutions Inc., Identix Inc., and Virage Logic Corporation saw their stocks decline after lowering their guidance.

Key Takeaways:

  • General Motors Corporation added 63 cents, or 2%, to $36.50 after a bullish Lehman Brothers research note raised its view on the auto and auto parts sector to neutral from negative.
  • Taser International Inc. shares rose 36 cents, or 4%, to $7.10 after a wrongful death suit against it was dismissed in the U.S. District Court for the Eastern District of California.
  • Genzyme Corporation reported a 58% increase in second-quarter net income, with earnings per share (EPS) rising to 46 cents from 33 cents in the previous year.
  • Allscripts Healthcare Solutions Inc. stock dropped 56 cents, or 3%, to $17.36 after Piper Jaffray downgraded the company's shares to market perform from outperform based on valuation.
  • Genzyme Corporation raised its full-year 2005 earnings and revenue guidance, expecting to earn between $1.75 to $1.80 a share on revenue of $2.6 billion to $2.8 billion.
  • MGIC Investment Corporation reported better-than-expected second-quarter results, with net income climbing to $174.4 million, or $1.87 a share, from $154.5 million, or $1.56 a share, a year earlier.

Statistics:

  • General Motors Corporation: +63 cents, +2%
  • Taser International Inc. shares: +36 cents, +4%
  • Genzyme Corporation second-quarter net income: +58%
  • Genzyme Corporation earnings per share (EPS): 46 cents
  • Allscripts Healthcare Solutions Inc. stock: -56 cents, -3%
  • MGIC Investment Corporation second-quarter net income: +$174.4 million, +$1.87 a share
  • Genzyme Corporation full-year 2005 earnings guidance: $1.75 to $1.80 a share

Sources:

  • Dow Jones Commodities News Select via Comtex
  • Alex Davidson; Dow Jones Newswires; 201-938-5394; alex.davidson@dowjones.com