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LATE TRADING: Genentech Up On 4Q Beat, 2007 Guidance January 10, 2007

Posted by notapundit in Economic News.
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NEW YORK (Dow Jones)–Shares of Genentech Inc. (DNA) rose 1.4% to $84.95 in late trading Wednesday, after the company reported a fourth quarter that beat earnings estimates, and issued strong guidance.

Genentech’s fourth-quarter net income improved to $594 million, or 55 cents a share, from a year-earlier profit of $339 million, or 31 cents a share. Excluding items, earnings for the quarter were 61 cents a share.

This was above analysts’ average estimate of 56 cents a share, according to Thomson Financial.

Sales of its new eye drug Lucentis, which was approved in 2006, were $217 million in the quarter.

The company said it sees a 20% to 30% increase in non-GAAP EPS growth for 2007.

Shares of Staar Surgical Co. (STAA), which makes ophthalmic products, rose 3.6% to $6.95, after the company said it expects fourth-quarter revenue of $15.2 million, up 26% from the year-ago period.

Analysts surveyed by Thomson Financial currently forecast, on average, revenue of $14 million for the quarter.

Shares of consulting firm Sapient Corp. (SAPE) rose 3.2% to $6.15, after the company reported that third-quarter earnings, before items, rose to 7 cents from 6 cents in the prior year.

Analysts polled by Thomson First Call were looking for per-share income of 4 cents.

The company said quarterly revenue rose to $111.5 million from $84.3 million in the prior year, while Wall Street was looking for $102 million.

Shares of adult nightclub operator VCG Holding Corp. (PTT) rose 3.4% to $6.45, after the company said it expects fiscal 2007 net income of $8.6 million, or 50 cents a share, on revenue of $40.8 million.

Shares of Sirius Satellite Radio Inc. (SIRI) fell 1% to $3.94, after its chief executive said at a conference the company was open to increasing its monthly subscription prices.

Sirius recently said it closed the year with six million subscribers – on the low end of expectations. The company had originally expected to finish the year with 6.3 million, but then lowered expectations after experiencing slower-than-expected holiday sales in December.

By Henry Sanderson, Dow Jones Newswires

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