Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, July 23, 2010

Article Excerpt

BECKMAN COULTER INC., $47.26, New York symbol BEC, makes lab equipment that doctors and medical researchers use to detect substances in blood and other bodily fluids. The stock fell 21% on Friday after the company warned that problems with a test kit are hurting its sales and earnings. This test kit determines whether a patient has suffered a heart attack. Earlier this year, Beckman recalled the test kit, which accounted for 1% of its 2009 sales. The company is now working with the U.S. Food and Drug Administration to fix the problem. Beckman plans to begin clinical trials of the upgraded test kit next year. Meanwhile, Beckman’s efforts to fix the test kit are diverting its attention from developing other products. As well, a number of its clients are pharmaceutical companies, and many have been purchased by larger competitors. That has hurt demand for Beckman’s systems. In the three months ended June 30, 2010, Beckman’s sales rose 19.2%, to $902.0 million from…