Wyeth (WYE) NewsBite - Wyeth Profit Falls but Tops Estimates

Posted on Wednesday, July 23, 2008 10:28 AM

Wyeth (WYE) opened at 47.09. So far today, the stock has hit a low of 46.50 and a high of 47.09. WYE is now trading at 46.56, up 1.88 (3.99%). The stock hit its 52 week high of 56.85 in July and set its 52 week low of 38.39 in March. WYE lost some ground at the end of 2007, but has moved to the upside since the beginning of this year. Wyeth reported today its second-quarter profit fell 6.3% to $1.12 billion on charges for severance and other costs related to ongoing job cuts. The company posted adjusted earnings of 91 cents per share on sales of $5.95 billion, while analysts predicted earnings of 87 cents a shares on revenue of $5.69 billion. Technical indicators for the stock are bullish but slightly deteriorating while S&P gives WYE a positive 4 STARS (out of 5) buy rating. If you’re looking for a hedged play on this stock, consider an August bull-put credit spread below the $40 range. WYE stock could fall up to 14.1% before expiration and this position would still be profitable. [RHF - Seven Summits Strategic Investments NewsBite]