Monday, November 5, 2012

Dendreon (DNDN), Huntsman (HUM) Share Rally On Solid Earnings

Shares of Dendreon Corporation(NASDAQ:DNDN) jumped by 62 cents or 16.10% to $4.47 after the company said that revenue from its prostate cancer therapy Provenge rose by 27%  in third quarter.
Revenue from the drug totaled to $77.9 million in the third quarter.

The company posted a loss of $154.9 million or $1.04 per share, a rise by 4% in comparison to last year mainly because of costs associated with job cuts and other restructuring.

Total revenue increased by 21% to $78 million in comparison to last year. FactSet analyst expected loss of 80 cents on revenue of $81.1 million.

The restructuring, job termination, and asset impairment costs were more than double, came to $81 million. Further the sales cost declined by 20%.

Dendreon in July stated of cutting down 600 jobs, close a manufacturing plant and reorganize some administrative work as part of a plan to eliminate $150 million in annual spending.

Shares of Huntsman Corporation(NYSE:HUN) rose by 66 cents or 4.25% to $16.19 in Friday’s session as the company posted a higher than expected third quarter profit.

The hike in price of polyurethane has turn out to be successful for the company as it has helped offset weak sales in its pigments division, which makes the paint pigment titanium dioxide.

The third quarter revenue from Huntsman polyurethane business rose 3% whereas revenue from pigments fell by 30%. Total revenue fell 8 percent to $2.74 billion.

The greater demand of polyurethane in Europe and Asia amongst the customers making adhesives and composite wood products led the raised prices of polyurethane to be success for the company.

The company posted a third quarter profit of $116 million, or 48 cents per share in comparison to a loss of $34 million or 14 cents per share for last year.

Huntsman earned 70 cents per share excluding one-time item which beats the analyst expectation of 51 cents per share on revenue of $2.9 billion according to Thomson Reuters I/B/E/S.

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