Trading this morning has been mixed. The S&P 500 (INDEXSP:.INX) is up a fraction, but the Nasdaq is down by more than 0.3%. Earnings releases have been the largest impetus for big movements in the market today; some of the hottest stocks heading into the afternoon are VMware, Inc. (NYSE:VMW), Anacor Pharmaceuticals Inc (NASDAQ:ANAC), Keryx Biopharmaceuticals (NASDAQ:KERX), EMC Corporation (NYSE:EMC), and Yahoo! Inc. (NASDAQ:YHOO), here’s why:
VMWare, Inc. (NYSE:VMW) is down almost 20% so far today after releasing a disappointing earnings report on Monday after the close of market. At least four analysts cut their ratings on the enterprise software company after the earnings report was made public last night. The company recorder fourth quarter earnings of 51 cents per share, after charges, on revenue of $1.29 billion.
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The company’s stock has been falling today, not on the earnings numbers, which were broadly in line, but on the forecast for the first quarter of 2013. VMWare, Inc. (NYSE:VMW) expects weak demand in the first quarter to hit its bottom line. The company forecast 11-13% year on year earnings growth for Q1 2013. Analysts were expecting the firm, which has a 533 billion market cap and a P/E of 45, to grow more quickly in the coming months.
Anacor Pharmaceuticals Inc (NASDAQ:ANAC) stock has seen its price drop by more than 19% in trading so far this morning. The company did not release an earnings report, but rather released the results from a clinical trial this morning. The new drug, which treats nail fungus infection, saw positive results in its trial, but the market was not convinced.
The reason for the drop in the company’s stock appears to be a comparison investors are making with a competing product from Valeant Pharmaceuticals Intl Inc (NYSE:VRX). The cure rate for the Anacor Pharmaceuticals product is significantly lower that that offered by the Valeant competitor, making it a worse bet going forward.
Keryx Biopharmaceuticals (NASDAQ:KERX) is offering some good news in the pharmaceutical industry. The firm’s stock has risen by more than 30% in trading this morning. The company released results this morning about a new drug for Kidney disease, called Zerenex.
The results from the phase 3 clinical trial were strong, according to the company and stock in the firm has risen accordingly. Keryx Pharmaceutical (NASDAQ:KERX) is a stock to watch going forward, because it has such a strong product under its belt. Zerenex will be highly sought after, an acquisition is not beyond the bounds of belief in the coming months.
EMC Corporation (NYSE:EMC): The storage solutions firm revealed its earnings report for the last three months of 2012 yesterday afternoon after the market closed. The company’s stock price has dropped by more than 5% today in response to the earnings report.
EMC Corporation announced Q4 2012 earnings of 39 cents per share on revenues of $6.03 billion. Analysts were expecting revenue to come in a little lower than that, but the real disappointment was the earnings per share which analysts had forecast at 52 cents per share. Guidance for 2013 also came in lower than analysts had expected. EMC Corporation (NYSE:EMC) forecast earnings of $1.85 per share, compared to analysts expectations of $1.90 per share.
Yahoo! Inc. (NASDAQ:YHOO): A better than expected earnings report released after the market closed on Monday say shares surge after the market closed, but that has been met by pull back in the market this morning. Yahoo stock has fallen by around 2% in this morning’s trading.
Yahoo! Inc. (NASDAQ:YHOO) revealed earnings of 32 cent per share on revenue of $1.22 billion. Analysts had expected the firm to reveal earnings of just 28 cents per share, but the optimism after the figures were released was met by a pullback, as investors wondered where the company was going.