Wednesday, clinical research organization Kendle (KNDL) reported a decline in fourth-quarter earnings, impacted by programming issue in a study related to one of its customers. The company also initiated earnings outlook for 2009, below the Street view.
Net income for the fourth quarter declined to $5.0 million or $0.33 per share from $6.4 million or $0.43 per share in the corresponding period last year. Eleven analysts polled by Thomson Reuters expected earnings per share of $0.54. Analysts' estimates typically exclude special items.
The company attributed the decline in results to a programming issue unique to one study for one customer. As a result of the required rework, net service revenues were reduced by about $2.3 million and additional direct costs were accrued at year-end, negatively impacting earnings per share by 18 to 20 cents. Kendle expects to recover much of the additional direct costs in future periods through insurance proceeds.
Income from operations for the quarter was $10.9 million, or 10% of net service revenues, compared to $15.2 million, or 14.6% of net service revenues, in the prior-year quarter.
Net service revenues increased to $109.15 million from $104.27 million in the same period last year. Ten Street analysts estimated revenues of $114.29 million.
Net sales declined to $139 million from $142 million in the corresponding period last year. Total revenues rose to $161.3 million from $154.6 million in the same period last year. New business awarded totaled $163 million for the quarter compared to $174 million in the same periods last year.
For the twelve-month period, net income rose to $29.4 million or $1.96 per share from $18.7 million or $1.26 per in 2007. Income from operations was $56.8 million, or 12.0% of net service revenues, compared $52.8 million, or 13.3% of net service revenues for2007. Annual net sales increased to $645 million from $598 million in 2007
Looking ahead, for 2009, the company expects net service revenues in the range of $510 to $530 million, and GAAP earnings per share in the range of $1.55 - $1.85 per share. Excluding the effect of adopting APB 14-1, effective January 2009, pro forma earnings are expected to be in the range of $2.01 to $2.31 per share.
On average, Street analysts currently expect the company to earn $2.32 per share on revenues of $521.64 million for 2009.
KNDL is currently down $2.55 or 11.94% and trades at$18.80.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.