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Genmark Markedly Lower; Korn/Ferry Pops; Adobe Drying Out?

Dan Berman
Hot Stock Minute
Genmark Markedly Lower; Korn/Ferry Pops; Adobe Drying Out?

Genmark Diagnostics (GNMK) is down 4% in early trading after falling 8-percent yesterday. Genmark has lowered its yearly sales outlook by $5-million down to $30-million. The company is citing a decrease in business from its largest customer, as well as challenges with medical reimbursements for its products. Not counting the losses we're seeing this morning, the stock is up 145% over the past year. It hit an all-time high of $16 a share last month.

Next up is Korn/Ferry (KFY) which says unchanged here because it trades on the NYSE, but has been up nearly 5% this morning. That's on top of a 5% gain yesterday. The recruiting services firm beat estimates with its quarterly report, posting profits of 32-cents a share when estimates were for 31-cents. That's up from 28-cents a year ago and reflects a 15% rise in revenue. This morning's gains put the stock up nearly 50% over the past year and approaching their 52-week high set back in February.

Now we look at Rambus (RMBS), which has been up as much as 4% in early trading here on the NASDAQ. The chip designer has announced a settlement with STMicroelectronics which puts a lawsuit over licensing to bed. You may recall it was just last week that Rambus settled a separate lawsuit with a South Korean chipmaker. Shares of Rambus have been up 54% over the past year, most of those gains coming since the start of 2013.

Finally, there's Adobe Systems (ADBE) which reports earnings after today's closing bell. Analysts are looking for the company to post earnings of 34-cents a share down sharply from 60-cents a year ago on revenue that teeters just above $1-billion. Adobe has notched a profit in each quarter of the past two years, but it has kept slipping over the last 12-months. The biggest drop came in the last quarter when profit plummeted 71% from the prior year.