Why Shares of Catalent Were Up Friday
Shares of contract drug manufacturer (NYSE: CTLT) were up more than 14% Friday afternoon after the healthcare company announced updated guidance and said it was delaying its third-quarter report for a second time. The stock is down more than 18% this year.
It seems counterintuitive that Catalent, after downgrading guidance and saying it was not able to prepare third-quarter earnings on time, would go up in price. But this is one of those situations where no news was bad news, and any kind of update was enough to allay investors' concerns.
The company's shares had already fallen when it announced on May 8 that its earnings report and guidance would not be on May 9, as originally scheduled. The stock had closed at $47.75 on May 5. The day the announcement came out, it closed at $35.46.
Source Fool.com
