Category Archives: oud

Baidu Stock Falls On Sponsored-Post Limits; Shanghai Index Down

Baidu ’s ( BIDU ) stock fell again Monday amid a broad sell-off on Shanghai’s stock exchange after China’s biggest Internet search firm announced new measures in response to a student’s death and government probe into  health care advertising. U.S.-listed shares of Baidu fell 3.2% to 168.34 in morning trading on the stock market today . The stock tumbled 10.5% last week on the China probe, but had closed Friday just above its 200-day moving average. IBD’s Take: How healthy is Baidu’s stock and how does it compare to its peers? Find out at IBD Stock Checkup The Shanghai stock exchange fell 2.7% on Monday. Baidu said it would create a $150 million fund to fight Internet fraud and limit the number of sponsored posts to 30% of the search results page. The Cyberspace Administration of China (CAC) has reportedly set up a task force to probe Baidu amid mounting criticism over its prominent placement of sponsored health care services providers in its search results. Wei Zexi, a 21-year-old university student, died last month of a rare form of cancer. He had used the Chinese search engine to look for treatment for his cancer and later died after receiving care at a hospital he had found on Baidu search results. According to Nomura Securities , Baidu garners 20% to 30% of its  search revenue from health care. In 2010, China’s state-run television accused Baidu of promoting counterfeit drugs through its search engine.

Teva Stock Rallies After Q1 Earnings, Q2 Guidance Reassure Market

Generic and specialty drug giant Teva Pharmaceutical Industries ( TEVA ) beat analysts’ Q1 earnings estimates and guided Q2 in line with expectations Monday, sending the stock up in early trading. Teva’s Q1 earnings excluding one-time items came to $1.20 a share, down 12% from the year-earlier quarter but 3 cents above analysts’ consensus. Revenue shrank 3.5% to $4.81 billion, but that’s more than $30 million past consensus. Teva guided Q2 earnings at $1.16 to $1.20 a share, down from $1.43 a year ago and bracketing consensus. It forecast Q2 revenue to decline slightly to $4.7 billion to $4.9 billion, on the low side of analysts’ $4.89 billion. Teva stock was up 4.5% in early trading on the stock market today , near 52.50, perhaps as a relief rally after the whole industry got spooked Friday by Endo International ‘s ( ENDP ) comments about pricing pressure in generic drugs , driving it to slash its full-year guidance. Teva stock fell to a more than 18-month low of 50 on Friday. Teva declined to offer 2016 guidance until it closes its buyout of Allergan ‘s ( AGN ) generics unit Actavis, which is expected to happen next month, but its Q2 guide did not suggest a dramatic underperformance. Credit Suisse analyst Vamil Divan did note, however, that the generics business, which makes up about 45% of total revenue, missed Wall Street’s estimate, though this was balanced out by a beat on the specialty side. “U.S. Generics revenues declined 32% year over year, mainly from a decline in sales of Nexium and Pulmicort,” Divan wrote in a research note. “Specialty Medicine revenues increased by 10% year over year, driven primarily by higher sales of CNS (central nervous system) and respiratory products.” Allergan stock, which also sold off Friday, was up 4.5% in early trading Monday. Endo stock was down 2.5%.

Stratasys Earnings Beat Gives Lift To 3D Printer Market

Stratasys ( SSYS ) posted a first-quarter earnings beat before the market open Monday, sending its stock — and that of rival 3D Systems ( DDD ) — up in early trading. Sales guidance for the year also edged above views. Stratasys reported revenue of $167.9 million, beating the consensus estimate of $164.8 million by analysts polled by Thomson Reuters. That’s down 3% year over year but marks an improvement from the 20% year-over-year drop in the previous quarter. Earnings per share minus items of a penny fell from a 4-cent profit in Q1 2015 but still beat Wall Street expectations for a 4-cent loss. Stratasys beat on earnings during a difficult period for 3D printer companies. Competitor 3D Systems reported Q1 earnings Thursday that showed a third straight quarter of year-over-year declines in sales and missed Wall Street expectations. Stratasys stock was up 6%, above 22, in early trading on the stock market today . 3D Systems stock was up a fraction, near 13. Another 3D printer maker,  Voxeljet ( VJET ), was also up a fraction. Stratasys said it sold 5,125 3D printing and additive manufacturing systems during the quarter. “Although the overall market environment remains challenging, we made significant progress in improving our operating efficiency during the first quarter,” company CEO David Reis said in the earnings release. “We believe the recent refinements to our operating structure will make us more productive and better position us for future growth.” Stratasys guided 2016 revenue at $700 million to $730 million, with the midpoint slightly ahead of the analyst consensus estimate of $713 million. It projects EPS minus items of 17 cents to 43 cents, with the midpoint meeting views of 30 cents. For 2015, Stratasys posted EPS ex items of 19 cents on sales of $696 million.