ABMD - Hot Stocks: VRNS ZBRA plunge on earnings; IDXX climbs; ABMD surges 50% on JNJ merger deal

Stocks edged lower for the second day in a row on Tuesday, as investors positioned themselves ahead of the Federal Reserve's interest rate decision, due out during Wednesday's trading. The market is widely expecting another rate hike of 75 basis points.

While macro concerns set the overall tone, earnings news continued to be a major driver for individual stocks. This included Varonis ( VRNS ), which lost more than a third of its value on weak results and a reduced forecast.

Earnings news also prompted a selling spree in Zebra Technologies ( ZBRA ), which fell to a 52-week low on its quarterly report. On the other side of the spectrum, IDEXX Laboratories ( IDXX ) received a boost from the release of its financial figures.

In other news, Abiomed ( NASDAQ: ABMD ) was one of the day's standout gainers, boosted by a takeover deal signed with Johnson & Johnson ( JNJ ).

Standout Gainer

The release of quarterly results prompted buying in IDEXX Laboratories ( IDXX ). Shares of the provider of diagnostic testing for the pet and livestock markets jumped almost 10% on the news.

IDEX said its quarterly profit rose nearly 13% from last year, topping expectations , boosted by improved margins. This came on revenue growth of about 4%. Organic top-line growth reached 8% but the headline figure was hemmed in by unfavorable currency exchange.

Shares rallied $35.25 to close at $394.93. The advance added to a recent upswing, as IDEX has come off a 52-week low of $317.06. With Tuesday's gain, the stock reached its highest finish since mid-August.

Standout Decliner

Lower-than-expected Q3 results and a slashed forecast triggered a wave of selling in Varonis ( VRNS ). Shares of the data security firm cratered by 35%.

VRNS missed projections on both its top and bottom lines. The company also lowered its full-year forecast, saying it now expects adjusted EPS of $0.14-$0.15. Previously, the firm had projected $0.19-$0.22.

In giving the reduced guidance, VRNS cited macroeconomic headwinds and foreign currency weakness.

VRNS finished Tuesday's trading at $17.27, a decline of $9.50 on the day. The stock also touched an intraday 52-week low of $17.01. All told, shares have retreated nearly 65% since the close of 2021.

Notable New High

Cardiac pump maker Abiomed ( ABMD ) skyrocketed nearly 50% after agreeing to a takeover deal from healthcare giant Johnson & Johnson ( JNJ ). With the advance, the stock set a new 52-week high.

Under the agreement , ABMD will receive an upfront payment of $380 per share in cash. Including debt, the transaction has a total value of about $16.6B.

Spurred higher by the merger deal, ABMD finished trading at $377.82, climbing $125.74 on the session. During the session, the stock reached an intraday 52-week high of $381.99.

Notable New Low

Zebra Technologies ( ZBRA ) plunged in the wake of its latest earnings report as a disappointing profit and falling revenue sparked a 16% slide in its share price. The stock also reached a new 52-week low.

The maker of products like barcode printers and scanners reported a Q3 non-GAAP profit of $4.12, missing projections by over 10%. Meanwhile, revenue fell 4% to $1.38B -- $100M below consensus.

Looking ahead, ZBRA gave a disappointing forecast for Q4 , saying it now expects a profit between $4.50 and $4.80 per share. Analysts were looking for a figure of around $5.15 per share.

Dragged down by the earnings news, ZBRA plummeted to an intraday 52-week low of $237.28. The stock trimmed its losses slightly before the close but still finished at $238.30, a decline of $44.92.

With Tuesday's slide, ZBRA reversed a mild recovery it had posted in the second half of October. The stock is now about 59% lower for 2022 as a whole.

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