Diamonds and Dogs
More auto parts? Motorcar Parts of America (MPAA) jumped 10% in another down market following better than expected earnings. Earnings, adjusted for non-recurring costs and stock option expense, came to 50 cents per share. Revenue for the maker of remanufactured vehicle alternators and starters came in at $97.4 million in the period, which missed Street forecasts. But with the stock down 18% year to date, investors weren't expecting much good news. Gross profits increased year over year so hopefully business is picking up for the small cap company.
To infinity and beyond for the wrong reason with our dog today. Infinity Pharmaceuticals (INFI) dropped 69% after a mid-stage trial update. Infinity Pharmaceuticals released data from its phase 2 monotherapy study of duvelisib, a treatment for non-Hodgkin lymphoma it collaborated with ABBVie. Unfortunately, the response rate for the drug was inferior compared to currently available treatment options. That suggests that even if duvelisib does manage to find its way to market, it could have a very hard time competing against other therapies. Infinity is will now go ahead and cut 46 of their team members or 21% of their staff. They also mentioned their previous financial guidance for 2016 should no longer be relied on. Not good news for Infinity.
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