Martek Biosciences (MATK)

[Millenium323]

Martek Biosciences climbs on strong 2Q results
Martek shares rise, avoiding broader market slump, as overseas sales boost fiscal 2Q results

Symbol Price Change
MATK 22.37 +3.12

On Friday June 4, 2010, 12:23 pm EDT
NEW YORK (AP) -- Shares of Martek Biosciences Corp. surged Friday, as a recent acquisition boosted the nutritional supplement maker's fiscal second-quarter profit and sales far above Wall Street's expectations.

THE SPARK: Martek reported its fiscal second-quarter results after the markets closed on Thursday. The company acquired Amerifit Brands during the quarter, and it said sales in Asia were strong.

THE BIG PICTURE: Martek's infant formula supplement sales slumped in the last few quarters -- partly of a because a dip in the U.S. birth rate -- but they rebounded in the latest quarter. The Columbia, Md., company attributed most of the improvement to better sales overseas.

THE ANALYSIS: Food and drink revenue growth is returning, said Canaccord Genuity analyst Scott Van Winkle. In a note to clients, Van Winkle said the company has a strong product pipeline and will start selling those products next year. He thinks that could boost the stock further

SHARE ACTION: The broader market slumped Friday due to disappointing jobs data, but Martek stock climbed $2.85, or 14.8 percent, to $22.10 in midday trading. The stock has ranged from $17.09 to $25.43 over the past year.