American Medical Systems Holdings, Inc. (AMMD) reported strong fiscal third quarter results. For the quarter, earnings per share was 27 cents, beating the Zacks Consensus Estimate of 20 cents and the year-ago earnings of 18 cents. Earnings per share for the reported quarter were also ahead of the company’s previous guidance of 17 to 21 cents.   Sales   Total sales for the quarter increased 4.9% year over year to $123.2 million. Excluding an unfavorable foreign currency translation (FX), net sales increased 6.7% year over year. On a geographic basis, U.S. sales accounted for roughly 75% of total sales and increased 9.2% year over year. International sales declined 6.1% year over year.   In terms of business segments: Men’s health revenues increased 6.6% year over year to $54.7 million. Growth was primarily due to higher sales of the erectile restoration system.   Women’s health revenues increased 4% year over

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SurModics’ (SRDX) fourth-quarter earnings per share came in at 18 cents, below the Zacks Consensus Estimate of 20 cents. The company reported revenues of $19.2 million, down 17% compared to the year ago period. In addition to quarterly results, SurModics came out with fiscal year 2009 results. The company recorded revenues of $121.5 million in 2009, up 25%, compared to $97 million in the previous year and earnings per share of $1.07 for 2009.

On a business unit basis, apart from Diagnostic, revenues from the other three segments – Cardiovascular, Ophthalmology and Other Markets, recorded a decline in revenues for the fourth quarter. While Diagnostic revenues increased 2% year over year to $4.6 million, revenues for the other three segments declined 12% to $9.8 million, 29% to $1.9 million and 41% to $2.9 million, respectively.

Cardiovascular segment results were impacted by the continuing decline in Cypher sales. SurModics derives a substantial

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For Immediate Release

Chicago, IL – November 5, 2009 – Zacks Equity Research highlights Novatel Wireless (NVTL) as the Bull of the Day and The Corporate Executive Board (EXBD) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Automatic Data Processing (ADP), Johnson & Johnson (JNJ) and Kraft Foods (KFT).

Full analysis of all these stocks is available at http://at.zacks.com/?id=5506

Here is a synopsis of all five stocks:

Bull of the Day:

We upgrade our recommendation for Novatel Wireless (NVTL) to Outperform following the blockbuster financial results of its third quarter 2009.

We expect the top-line of Novatel to maintain its current growth rate supported by strong demand for MiFi mobile intelligent hotspot and USB modems.

The company has generated a record-high level of free cash flow and significantly improved its gross margin. In addition, the company

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This morning, Automatic Data Processing (ADP), the biggest payroll processing firm, estimated that the economy lost 203,000 private sector jobs in October. That was more than the consensus estimate of 190,000 jobs lost. However, the September job loss numbers were revised to a loss of just 227,000 from the original read of 254,000. Thus the losses are coming from a higher base level, and if the revisions are included, this report was in line with consensus or perhaps a bit better. Still, it indicates that while the economy might be expanding, employment isn’t. However, this is the seventh straight month where ADP has seen fewer jobs lost than the month before. This is similar to the pattern that we saw following the last two recessions. While employment has always been considered a lagging indicator, it has been becoming more so with each passing decade. In part ...

Wright Medical Group, Inc. (WMGI) reported third-quarter earnings per share of 19 cents, surpassing the Zacks Consensus Estimate of 9 cents. The company had earned 19 cents per share in the year-ago quarter.   Sales   Net sales in the reported quarter increased 6% year over year to $117.7 million. Growth was fueled by strong demand for the company’s extremity, hip and knee products that increased 18%, 7%, and 5% year over year, respectively. This was partly offset by lower biologics sales that declined 4% year over year.   On a geographic basis, the U.S. contributed approximately 63% to total revenues and increased 4% year over year. International sales increased 9% year over year.   Margins   Gross margin declined 170 basis points (bps) year over year to 69.5% due to higher cost of goods sold. Selling, general and administrative expenses as a percentage of sales declined 160 ...

Vertex Pharmaceuticals (VRTX) posted a loss of 83 cents per share in the third quarter, 3 cents wider than the Zacks Consensus Estimate of a loss of 80 cents. The company posted a loss of 92 cents per share in the year ago period. The wider than expected loss was mainly due to a significant increase in costs and lower revenues.

Revenues declined to $24.9 million in the reported quarter from $31.6 million in the year ago period. Revenues consist of royalty revenues and collaborative and other research and development revenues. Lower revenues were primarily due to a decrease in collaborative revenues.

Expenses increased mainly due to the increased size of the company’s workforce, increased spending on late-stage clinical programs and increased stock-based compensation expenses. Research and development (R&D) expenses increased to $132.1 million, up from $131.7 million in the year-ago period, mainly due to investments supporting the company’s hepatitis C virus

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Becton, Dickinson and Company (BDX) is set to acquire HandyLab Inc., an Ann Arbor, Michigan-based company that develops and manufactures automation platforms and molecular diagnostic assays. The acquisition is expected to close by the year end. Financial terms of the deal have not been disclosed. Becton had already entered into a development and distribution agreement with HandyLab in May 2009. The acquisition thus enables Becton to support its molecular diagnostics strategy by accessing the HandyLab instrumentation technology, which is considered to be an industry leading molecular diagnostic automation platform. Becton plans to utilize its BD GeneOhm molecular assays onto the HandyLab platform and market it as the new BD Max system. The acquisition will boost demand for Becton’s molecular diagnostic products that will eventually drive the company’s top-line. Becton, Dickinson and Company develops, manufactures and markets medical devices, supplies, laboratory equipment and diagnostic products globally. The ...

Recently, Theravance (THRX) received a milestone payment of $20 million from its partner Astellas Pharma. The payment follows the U.S. Food and Drug Administration (FDA) approval of Vibativ (telavancin) and for supplying Astellas Pharma with the launch inventory for the first commercial sale of the drug in the U.S. Vibativ is expected to hit the U.S. market by year-end.

Earlier, in September, Theravance received FDA approval to market Vibativ for the treatment of complicated skin and skin structure infections (cSSSI) caused by Gram-positive bacteria. While the drug will be marketed and sold by Astellas, Theravance will receive royalties on global sales. In the U.S. , the company will help Astellas in marketing the drug for the first three years post approval.

Apart from cSSSI, Vibativ is also being studied for hospital-acquired pneumonia (HAP). The company has already submitted a New Drug Application (NDA) for this indication and has been assigned a

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Stryker Corporation (SYK) yesterday reported third quarter earnings per share of 69 cents, in line with the Zacks Consensus Estimate and higher than the year-ago earnings of 66 cents. Net sales were flat year over year at approximately $1.7 billion. An unfavorable foreign exchange translation (FX) negatively affected net sales in the quarter.  Excluding FX, net sales increased 1.2% year over year. On a geographic basis, U.S. sales contributed roughly 65% of total sales and increased 0.2% year over year. International sales declined 0.3% year over year. In terms of business segments: Orthopaedic Implants sales increased 5.5% year over year to $1.0 billion. Growth was contributed by all the products, such as Hips, Knees, Trauma, Spine, and Craniomaxillofacial.  MedSurg Equipment sales declined 7.7% year over year to $637 million. The decline can be primarily attributed to lower capital spending by hospitals due to the current economic turmoil. Gross ...

Boston Scientific Corporation (BSX) yesterday reported financial results for the third quarter of fiscal 2009 after the market close. Earnings per share were 19 cents, beating the Zacks Consensus Estimate by 5 cents and the year-ago earnings by 3 cents. Sales Net sales in the quarter were $2.0 billion, increasing approximately 2% year over year. Excluding an unfavorable foreign currency translation (FX), net sales increased roughly 3% year over year. On a geographic basis, U.S. sales contributed roughly 58% of total revenues and increased 4% year over year. International sales increased 2% year over year. Growth in net sales can be attributed to higher demand for the company’s Cardiac Rhythm Management (CRM), Endosurgery and Neuromodulation products, with revenues increasing 6%, 8%, and 21%, respectively, in these segments. This was partly offset by lower sales of Cardiovascular, Neurovascular and Electrophysiology products. In the CRM space, ...