PPD Q3 Profit Down, Cuts FY09 Outlook

10/27/2009 7:42 PM ET

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(RTTNews) - Pharmaceutical Product Development Inc.(PPDI: News ), a contract research organization,Tuesday, reported a decline in profit for the third quarter compared to last year, hurt by lower sales. The company also lowered its guidance for the full-year 2009.

PPD's net income for the quarter declined to $37.7 million or $0.32 per share from $51.2 million or $0.43 per share in the prior-year period. Income from continuing operations was $37.7 million or $0.32 per share, compared with $50.5 million or $0.42 per share in same quarter last year.

On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.32 per share. Analysts' estimates typically exclude one-time items.

Total revenue for the quarter declined to $341.1 million from $394.1 million in the year-ago period. Ten Wall Street analysts expected revenues of $334.16 million for the quarter.

Segment-wise, development segment net sales declined to $315.8 million from $358.7 million and discovery sciences segment net sales, including a milestone payment from Takeda Pharmaceutical Co. Ltd., decreased to $1.1 million from $3.4 million in the year-ago period.

Income from operations was down to $46.9 million from $69.9 million in the previous year quarter.

For the nine months, net income was $140.30 million or $1.18 per share, compared with $140.32 million or $1.16 per share last year. Income from continuing operations decreased to $120.63 million or $1.02 per share from $138.63 million or $1.15 per share in the prior-year. Revenue was $1.06 billion, down from $1.19 billion last year.

Looking forward to the full-year, the company said it expects earnings in the range of $1.38 to $1.40 per share, compared to previous range of $1.54 to $1.60 per share. Net revenue is estimated to range from $1.29 billion to $1.31 billion, compared with earlier forecast in the range of $1.39 billion to $1.47 billion.

Analysts expect earnings of $1.34 per share on revenues of $1.34 billion.

PPD closed Tuesday's regular at $23.36, up $0.34 or 1.48% on a volume of 1.57 million shares while in after hours trading PPD is up by $0.04 or 0.17% at $23.40 on the Nasdaq.