The S&P 500 fell 0.1% at closing Monday, while the Dow Jones Industrial gained 0.1%, barely continuing a rally of nearly 10% — its best since a six-week period that ended Nov. 6. Investors will be keeping close tabs on the Federal Reserve, which meets Tuesday and Wednesday to discuss whether another interest rate hike is on the table.
Looking ahead to this morning’s action, a pair of stocks look to open Tuesday down massively — Valeant Pharmaceuticals Intl Inc (NYSE:VRX) and MannKind Corporation (NASDAQ:MNKD) — while one, Solazyme Inc (NASDAQ:SZYM), looks to soar after the bell.
Valeant Pharmaceuticals Intl Inc (VRX)
Battered pharmaceutical stock Valeant was set to open 17% lower after issuing disappointing preliminary fourth-quarter 2015 earnings and cutting its first-quarter earnings guidance.
Adjusted Q4 earnings came to $2.50 per share on revenues of $2.79 billion, with the bottom line falling well below expectations of $2.61 per share. The top line did edge expectations for $2.75 billion.
Q1 estimates were hacked, with profit guidance of $2.35 to $2.55 per share knocked down to $1.30 to $1.55 per share, and revenue guidance of $2.8 billion to $3.1 billion revised to $2.3 billion to $2.4 billion.
VRX in October announced that it was under investigation for drug “pricing, distribution and patient support practices,” not long after reports that the company had spiked prices on its drugs. The damage has been severe — even before Tuesday’s opening, VRX shares are off some 75% since their August high.
MannKind Corporation
While Wall Street drove up MannKind stock ahead of its fourth-quarter earnings report, the final result disappointed, leading MNKD to a likely lower open Tuesday.
The biopharmaceutical company behind diabetes treatment Afrezza posted a loss of 66 cents per share, compared to a loss of 9 cents a share in the year-ago period. Wall Street expected a loss of 5 cents per share for the quarter.
Its research and development expenses were down 64.8%, from $17.6 million to $6.2 million due in part to MannKind’s ongoing transition from development to commercial activities. Additionally, sales of Afrezza were below expectations.
The company also announced that Michael Castagna will now serve as Chief Commercial Officer.
MNKD shares were set to open Tuesday down 7%.
Solazyme Inc (SZYM)
Solazyme shares skyrocketed after beating Q4 estimates and announcing that it is refining its focus on its food, nutrition and specialty ingredients portfolio.
CEO Jonathan Wolfson said the company’s commitment to sustainable and healthier foods will occur as part of a joint venture with agribusiness company Bunge Ltd (NYSE:BG). “We are different in that we have built and offer true innovation with new, and unique ingredients based on algae, the mother of all plants, and earth’s original superfood.”
Solazyme is attempting to bring algae into the spotlight. SZYM announced a five-year deal with Unilever N.D. (NYSE:UN) to acquire renewable algae oils for use in personal care products, and the company expects to rake in revenue of more than $200 million over the half-decade.
SZYM posted revenues of $10.4 million, which came short of the Wall Street consensus mark of $11.33 million. However, a net loss of 32 cents per share was much better than the expected loss of 43 cents per share.
Solazyme shares were set to open Tuesday’s trading a whopping 30% higher.
