Tuesday, Pharmaceutical Product Development, Inc. (PPDI) revealed its financial guidance for fiscal 2010, indicating expectations of a single-digit revenue growth for the period.
The Wilmington, North Carolina-based company said it anticipates earnings for the full year 2010 in the range of $1.00 to $1.12 per share.
Analysts polled by Thomson Reuters currently expect the company to earn $1.27 per share for the year. Analysts' estimates typically exclude special items.
The company estimates net revenue for the full year 2010 in the range of $1.31 billion to $1.43 billion, which represents single-digit growth over full year 2009. The Street currently anticipates revenues of $1.30 billion for the year.
PPD revealed that it expects earnings in the range of $0.13 to $0.15 per share for the first quarter, $0.15 to $0.17 per share for the second quarter, $0.32 to $0.36 per share in the third quarter, and $0.40 to $0.44 per share in the fourth quarter.
Segment wise, the company expects fiscal 2010 earnings from development in the range of $1.18 to $1.30 per share and revenue in the range of $1.31 billion to $1.43 billion. Discovery sciences is estimated to generate revenue of $3 million and a loss of $0.18 per share during fiscal 2010.
PPD plans to spin off its compound partnering business from its core contract research organization or CRO business. The company is currently taking the steps necessary to complete the spin-off, and expects the transaction to be complete in mid-2010. Guidance for the discovery sciences segment includes only the activities of the compound partnering business in the first and second quarters of 2010.
The company anticipates cash flow from operations for the full year 2010 in the range of $150 to $200 million. Projected capital expenditures for the full year 2010 is in the range of $75 to $85 million. These expenditures will be primarily for facility expansions and improvements, as well as investments in information technology and new laboratory equipment.
David Grange, chief executive officer of PPD, said, "We have entered 2010 with clear objectives to restore growth in our business and to create long-term value for our shareholders. Strengthening our business models, establishing innovative partnerships, and enhancing our global capacity remain key priorities for us in 2010. As we continue to align our business for success, we will continue to invest strategically in our global future. The investments we plan to make indicate our intent to be recognized as the CRO of choice and as a valuable partner for our clients."
PPDI closed Tuesday's regular trading at $23.52, up $0.64 or 2.80%, on a volume of 1.34 million shares on Nasdaq.
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