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Major Movers on September 21; KBH, KORS, VVUS, HALO, VPHM

The following stocks saw significant activity in trading on Friday, September 21, 2012.

Home building company KB Home (NYSE: KBH) climbed 16.40% on Friday after the company announced unexpected profit for the fiscal third quarter, thanks to more home sales at higher prices. The company reported a net income of $3.3 million, or 4 cents a share, against a loss of $9.6 million, or 13 cents, in the year earlier quarter. Analysts’ consensual estimate was for loss of 15 cents a share. Revenue in the fiscal third quarter soared 16 percent to $424.5 million. Home deliveries jumped 7 percent to 1,720, while the average selling price of a house was $245, 100,-which was 8% higher than year earlier quarter’s price and 5% more than the preceding quarter. The better-than-expected result implies that the sector is recovering very well. Not surprising the KBH has leaped 127% YTD. Meanwhile, the S&P’s supercomposite Hombuilding Index has also climbed 87% YTD.

KBH’s unexpectedly strong results also boosted some other homebuilding stocks such as M/I Homes Inc. (NYSE:MHO), up 4.93%, Fortune Brands Home & Security Inc. (NYSE:FBHS), up 3.99%), and Beazer Homes USA Inc. (NYSE:BZH), up 6.9.

KBH closed at $15.26 and 52 week range is $5.02-$15.65.

Fashion Retailer Michael Kors Holdings Ltd (NYSE: KORS) jumped 9.26% on Friday after the company reported a robust growth in same-store-sales for the fiscal first quarter and raised its earnings and revenue outlook for both  fiscal second quarter and fiscal 2013.

In the second quarter, the company is now expecting earnings per share to fall in the range of 38 cents to 40 cents, which is 5 cents more than initial estimate. For the fiscal 2013, the company is anticipating earnings per share to come in the range of $1.39-$1.41, up 7 cents from previous projections.  Revenue is expected to fall between $1.85 billion and $1.95 billion, up earlier projections of $1.8 billion to $1.9 billion. Same-store-sales are expected to grow by 30% in fiscal 2013. Meanwhile Citigroup’s equity research unit has raised the price target for KORS to $68 a share.

Biopharmaceutical company, VIVUS, Inc (NASDAQ: VVUS) slumped 11.47% on Friday. European Medicines Agency committee said that it will recommend against approval for the company’s weight loss drug, Qsiva, which is approved by the United States Food and Drugs Administration. The European Medicines Agency said that formal decision will be taken by October. Meanwhile, VIVUS said that if the regulatory agency decides against its drug Qsiva then it will resubmit its application or ask for a reexamination and/or appeal against the decision.  The Company develops and commercializes therapeutic drugs used to cure diseases such as obesity and related morbidities (sleep apnea and diabetes, and men’s sexual health).

Biopharmaceutical companies, Halozyme Therapeutics, Inc. (NASDAQ: HALO) and ViroPhrama (NASDAQ: VPHM) climbed 24.02% and 7.56% respectively on Friday after ViroPharma and HALO announced the U.S. Food & Drug Administration gave approval to ViroPharma for resuming its clinical studies of the subcutaneous administration of Cinryze in combination with rHuPH20. Just last month, ViroPharma said the FDA was assessing Halozyme’s recombinant human hyaluronidase enzyme, or rHuPH20, for the potential long-term health related hazards. The FDA was worried  that  non-neutralizing antibodies will have an impact  on reproduction, development and fertility.

 

 

 


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