Acme Packet’s Guidance Falls Short and 4 Morning Hot Stocks Attracting Attention

Myriad Genetics (NASDAQ:MYGN) and marine-derived drugs leader Pharma Mar agree to conduct tests on patients in a Phase II clinical study of PM1183, a drug which induces double-stranded DNA breaks to cause cell death.

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Acme Packet’s (NASDAQ:APKT) shares lose over 15 percent as the company’s 2012 guidance falls short of consensus: revenue of $270 million-$275 million and EPS of $0.43-$0.47, much worse than the expected $295.9 million and $0.70 respectively. This follows on a previous warning relating to Q2 about low capex at customers.

Biotechnology company Gilead Sciences (NASDAQ:GILD) reported an excellent Q2 that beat estimates: total revenue +14 percent, product sales, the main bread-earner, also +14 percent, with antiviral product sales +14 percent. The fly in the ointment – royalty revenues, down 14 percent.

Online travel site Expedia (NASDAQ:EXPE) posted a bumper Q2 as transactions posted a 20 percent y-on-y growth (this on top of an 18 percent growth in Q1) and hotel room nights were up 22 percent though revenue per night was down 5 percent. Revenues per air ticket sold declined 11 percent though volumes grew 3 percent. International operations made up 38 percent of revenues. However, cost of revenue is up 17 percent.

The market absorbs Netflix’s (NASDAQ:NFLX) Q2 report and is not happy at all. Needham takes a chopper to the 2013 EPS estimate of $2 to $0.60 saying, “The Netflix story is a simple one. The company had a huge competitive advantage in the DVD rental market. It has none in the digital streaming market.” Shares plumb new 52-week depths.

Don’t Miss: Merck Earnings: Expands Margins AGAIN, TOPS Analyst Estimates.

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