The stock market slowly climbed over the course of Tuesday's session as geopolitical events and the continuing aftermath of Hurricane Harvey dominated headlines. Investors were initially rattled by growing tensions on the Korean Peninsula following reports that North Korea had fired an intermediate-range missile over Japan, increasing fears of a potential market correction. However, some companies announced positive news that sent their shares soaring. Movado Group, Inc. (NYSE:MOV), Catalent, Inc. (NYSE:CTLT), and ImmunoGen, Inc. (NASDAQ:IMGN) were among the best performers of the day. Below, we'll look more closely at these stocks to tell you why they did so well.
Movado earnings tick up
Shares of Movado Group surged 19.5% higher after the company reported second-quarter financial results that beat analysts' expectations. The high-end watch and accessories retailer increased net sales to $128.8 million, up slightly from $128.1 million in the prior-year quarter. Investors had been expecting a 7% decline in sales. Movado's adjusted earnings per share of $0.43 was nearly double the consensus estimate of $0.23. The company also announced it would pay its quarterly dividend of $0.13 and commenced a new $50 million share buyback program.
Chairman and CEO Efraim Grinberg reflected on the quarter, saying, "Despite a challenging U.S. retail environment, our global team's strong execution of our strategy and our increasing presence around the world led to growth in net sales with particular strength in Latin America, Europe and Asia."
While shareholders welcomed the report, Movado still has a long way to go in order to achieve its highs of recent years.
Catalent delivers the goods
Catalent stock soared 13.9% in response to a better-than-expected fourth-quarter earnings report. The maker of softgel capsules and drug packaging increased revenue to $619.6 million, up 16% compared to the prior-year quarter, or 19% in constant currency. Investors that follow the stock were expecting a much more modest 2% increase. Net income grew to $61.8 million, up 6% over the prior-year period, or 10% in constant currency. Earnings per share of $0.65 exceeded analysts' expectations of $0.57 per share. These impressive numbers were the result of double-digit revenue growth in each of Catalent's three reporting segments.
Investors also welcomed news of a long-term agreement to manufacture "the next generation of Pfizer's leading OTC pain relief product with the launch of new Advil Liqui-Gels Minis."
ImmunoGen signs a new collaboration deal
Finally, shares of ImmunoGen skyrocketed 17.3% following an announcement that the biotech entered into a strategic collaboration and option agreement with Jazz Pharmaceuticals (NASDAQ:JAZZ). The deal will cover three antibody-drug conjugate (ADC) treatments in development that will be used to target blood cancers. ImmunoGen uses a cancer-fighting approach that designs synthetic antibodies that bind to specific proteins in cancer cells and deliver a toxic payload, leaving the healthy cells intact. This method tends to have fewer side effects than traditional chemotherapy drugs.
This deal includes IMGN779, a CD33-targeted ADC for the treatment of acute myeloid leukemia that's currently in phase 1 testing; IMGN632, a CD123-targeted ADC for hematological malignancies that should enter clinical testing before the end of the year; and a third as-yet-unnamed drug. ImmunoGen's delivery system can be employed for a wide variety of cancer treatments once the antibody that will bind with the specific cancer cells can be identified.
Jazz will pay ImmunoGen $75 million upfront for the right to opt in later, as well as up to $100 million in development payments over the next seven years. Investors see this as validation that ImmunoGen's technology will likely attract other suitors.