Why Manitowoc, Endocyte, and Seattle Genetics Tumbled Today

Stocks closed modestly lower Friday, as violence in Ukraine's third-largest city raised the chances of more aggressive Russian intervention and whatever response Western nations would make to such a move. Favorable jobs data helped counteract the impact of geopolitical tension somewhat, but Manitowoc (NYSE: MTW  ) , Endocyte (NASDAQ: ECYT  ) , and Seattle Genetics (NASDAQ: SGEN  ) all fell much more sharply than the broader stock market, as troubling news affected their respective businesses.

Manitowoc fell 10% after the company reported surprising weakness in its crane-manufacturing segment. Although Manitowoc saw adjusted earnings jump 62% from the year-ago quarter, revenue fell 5%, with an even greater 14% drop in crane sales offsetting strength in Manitowoc's foodservice equipment division. Investors weren't satisfied with Manitowoc's reiteration of its full-year guidance, even though it implies that the company expects to make up for any shortfall during the remainder of the year. With other construction-equipment companies reporting more favorable results, investors will have to decide whether Manitowoc's results are a one-time aberration or a sign that its rivals are doing a better job of capturing opportunities in the recovering construction market.

Source: Manitowoc.

Endocyte plunged 62% after the company announced a setback for its vintafolide treatment. Endocyte had received a positive opinion for condition marketing authorization for the drug by the European Committee for Medicinal Products for Human Use earlier this year, raising hopes for the company's future. But a data safety monitoring board covering a phase 3 trial of Endocyte's vintafolide in the U.S. recommended that the trial be stopped because it hadn't met its goal of greater progression-free survival for platinum-resistant ovarian-cancer patients. With the bad news, Endocyte will have to work with its partner to determine whether to keep developing vintafolide, or concentrate on other opportunities.

Seattle Genetics dropped 11% even as the biotech announced solid revenue growth in its first-quarter results last night. Sales for Seattle Genetics rose 19%, with just about all of its revenue coming from product sales and affiliated revenue related to its Adcetris antibody-drug conjugate, which has thus far received FDA approval to treat Hodgkin's lymphoma and anaplastic large-cell lymphoma. Yet, even those results weren't enough to satisfy Seattle Genetics shareholders, and guidance for the full year suggested that Adcetris' upside could be far more limited than investors previously thought. Although the technology behind antibody-drug conjugates has great potential, Seattle Genetics will need to capitalize on that potential in order to reassure shareholders.

You don't want to miss this
The Economist compares this disruptive invention to the steam engine and the printing press. Business Insider says it's "the next trillion dollar industry." And everyone from BMW, to shoemakers, to the U.S. Air Force is already using it every day. Watch The Motley Fool's shocking video presentation today to discover the garage gadget that's putting an end to the Made In China era... and learn the investing strategy we've used to double our money on these three stocks. Click here to watch now!

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2941877, ~/Articles/ArticleHandler.aspx, 9/3/2015 6:56:40 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Dan Caplinger

Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool's Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on With a background as an estate-planning attorney and independent financial consultant, Dan's articles are based on more than 20 years of experience from all angles of the financial world.

Today's Market

updated 9 hours ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 3:59 PM
ECYT $5.30 Up +0.16 +3.11%
Endocyte, Inc. CAPS Rating: ****
MTW $16.77 Up +0.15 +0.90%
Manitowoc Company,… CAPS Rating: ***
SGEN $40.23 Up +0.91 +2.31%
Seattle Genetics CAPS Rating: ****