Vivus, Harmonic shares fall after hours


LOS ANGELES (MarketWatch) — Shares of Vivus Inc. dropped Monday evening after a federal regulator extended a review of the company’s weight-loss treatment, and shares of Harmonic Inc. fell after the networking services company’s quarterly forecast missed Wall Street’s current estimates.

Vivus’s shares
VVUS
 slumped 7.8% to $21.13 after the company said the U.S. Food and Drug Administration has extended its review of Qnexa to mid-July, giving the agency more time to study Vivus’s updated submission. The extension by three months — to July 17 from April 17 — is a “standard” period, said Vivus.

Vivus, following a request by the FDA, on April 4 submitted further materials about Qnexa, which in February won backing for its approval by a federal advisory panel. Read about the extended review period for Qnexa.

Harmonic
HLIT,
-2.56%
 shares fell 4.8% to $4.72 as the company, which makes systems that enable interactive video, data and voice services over cable, wireless and other networks, said it expects first-quarter adjusted earnings of 2 cents to 3 cents a share.

Net revenue is expected to come in between $125 million to $128 million, compared with Harmonic’s previous projection of $132 million to $142 million. Analysts polled by FactSet Research were looking for 9 cents a share on $137 million in sales.

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Harmonic said revenue was hurt by a slower-than-expected order rate in the early part of the quarter and by a decline in demand from its European customers.

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“Additionally, a higher percentage of our first-quarter bookings were associated with professional services and support agreements that will be recognized as revenue in future periods,” said Harmonic’s Chief Executive Patrick Harshman in a statement .

Preliminary total bookings for the first quarter were about $142.5 million, up 8% from $131.6 million in the year-earlier period, meeting the company’s expectations. The full first-quarter reported will be released on April 24.

On the broader U.S. equity market, stocks dropped sharply, with investors reacting after a holiday break to a lackluster U.S. March nonfarm payrolls report, which showed companies added fewer jobs than expected. Read more about U.S. stocks in Market Snapshot.

The Dow Jones Industrial Average
DJIA,
-0.16%
 lost 130 points, or 1%, to end at 12,929.59. The S&P 500 Index
SPX,
+0.43%
 declined 1.1% to 1,382.20 and the Nasdaq Composite Index
COMP,
+0.90%
 fell 1.1% to 3,047.08.


View more information: https://www.marketwatch.com/story/aol-shares-may-stay-active-in-trading-after-hours-2012-04-09

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