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Chegg, Molina Healthcare and Kadmon Holdings - AFTER HOURS

Chegg chugged higher while Kadmon put on a spurt but investors gave Molina the cold shoulder
There was a 47% year-on-year increase in the number of Chegg Services subscribers

After-hours’ trading activity was light on news from the market’s heavy hitters on Monday.

Chegg Inc (NYSE:CHGG) chugged higher, rising 2.1% to US$16.71, after hailing 2017 as its “best year yet”.

In the fourth quarter, the learning platform operator reported a 17% increase in revenues from the year before at US$73.5mln.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) clocked in at US$21.1mln on the back of a 47% year-on-year increase in the number of Chegg Services subscribers.

Fourth quarter earnings per share of 17 cents were comfortably ahead of the Street’s consensus forecast of four cents.

Molina Healthcare Inc (NYSE:MOH), a provider of Medicaid-related solutions for low income families and individuals, retreated in screen-based trading after reporting a net loss of US$5.49 per share for the fourth quarter.

“The disappointment of contract losses and related goodwill charges, continued restructuring costs, and catch up adjustments to unacceptable Marketplace results are legacies of the past,” claimed Joe Zubretsky, the chief executive officer and president of Molina, as he tried to explain the disappointing earnings.

The company said it expects this year’s net income per share to fall within the range of US$3.00 - US$3.50, or US$3.23 - US$3.73 adjusted to exclude exceptional items.

Molina’s shares were down 4.3% in screen-based trading.

Kadmon Holdings Inc (NYSE:KDMN) shot up 18% to US$5.70 after it announced positive top-line results from a Phase 2 clinical trial evaluating KD025, the company’s Rho-associated coiled-coil kinase 2 (ROCK2) inhibitor, in patients with idiopathic pulmonary fibrosis (IPF) who were previously treated with or offered pirfenidone and/or nintedanib.

KD025 was well tolerated and demonstrated clinical benefit.

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