Genentech earnings below estimates

0 Comments | Oakland Tribune, Jul 14, 2008 | by BAY AREA NEWS GROUP

South San Francisco-based Genentech Inc. said Monday its profit rose 5 percent on sales of its blockbuster cancer drugs, but the results fell short of Wall Street expectations.

The company said profit rose nearly 5 percent to $782 million, or 73 cents per share, from $747 million, or 70 cents per share, in the prior-year period. Revenue rose 8 percent to just under $3.24 billion from $3 billion.

Excluding charges of 2 cents per share for acquisitions and special items and 6 cents per share for stock-based compensation costs, the company earned 82 cents per share in the latest quarter. Analysts polled by Thomson Financial expected profit of 86 cents per share on revenue of $3.23 billion.

Energy

San Mateo-based Con-way Inc., a trucking company, snagged the highest possible fuel efficiency and environmental performance score for 2007 from the U.S.

Environmental Protection Agency's SmartWay Transport Partnership. Con-way's three primary operating companies, Con-way Freight, Con- way Truckload and Menlo Worldwide Logistics each received a Shipper Index Factor of 1.25, the highest possible score awarded under the EPA program.

Technology

Fremont-based Avanex Corp., which makes optical networking components, said its stockholders have authorized a reverse split of its common stock any time before the 2009 annual stockholders meeting, at a ratio ranging from 10 for 1 to 15 for 1.

A reverse stock split has no effect on the value of what shareholders own. Reverse stock splits reduce the number of shares and increase the share price proportionately.

Agriculture

Frost damage in April and scant water in the southern San Joaquin Valley won't significantly diminish California's statewide grape crop, according to the U.S. Department of Food and Agriculture.

The agency forecast that growers in the state will produce about 6.05 tons of grapes this year, down 3 percent from last year.

Compiled from staff and wire report. Got Bay Area business news? Reach Drew Voros at 925-943-8099 or dvoros@bayareanewsgroup.com.