« Return to News | CROs/Service Providers

Covance's Q1 Profit Drops, Cuts 2009 Forecast

Thursday, April 30, 2009 07:10 AM

Covance's first quarter profit fell 18%, and the company reduced its 2009 profit guidance. In after hours trading, Covance's shares fell 8.2% to $37.

The contract research organization (CRO) recorded first quarter net income of $40.3 million, or 63 cents a share, down from $49.1 million, or 76 cents a share, a year ago.

Covance cut its 2009 profit guidance to $2.50 to $2.70 per share from $3.00 to $3.20 per share.

First quarter net revenue was up 7% to $468.4 million, but early stage revenue, where Covance is traditionally strong, slipped 5% to $192.5 million.

Joe Herring, Chairman and CEO, Covance, stated, "First quarter results were impacted by reduced market demand in Early Development, resulting in year-on-year and sequential declines in revenue and profitability, offset by record results in Late-Stage Development. Our forecast for Early Development results is to be sequentially flat in the second quarter, followed by sequential growth in the third and fourth quarters. In Late-Stage Development, increased demand led to accelerated revenue growth of 18.2% in the quarter (25% excluding the impact of foreign exchange) and exceptional operating margins of 22.6%."

The company's backlog at March 31 grew 54.4% year-over-year to $4.42 billion compared with $2.86 billion at March 31, 2008 and $4.33 billion at year-end.

Share:          
CLINICAL TRIAL RESOURCES

Search:

NEWS ONLINE ARCHIVE

Browse by:

CWWeekly

December 17

Medici Global says its Alzheimer's Facebook page demonstrates the need for more early detection trials

Analysts: Expect more equity purchases of CROs in 2013

Already a subscriber?
Log in to your digital subscription.

Subscribe to CWWeekly.

The CenterWatch Monthly

January 2013

Parexel celebrates 30 years of change, growth
CRO's founder and chairman reflects on challenges of the past, present and future

Strategies for increasing patient diversity in trials
Sponsors look to improve racial, ethnic recruitment without going overseas

Already a subscriber?
Log in to your digital subscription.

Purchase the January issue.

Subscribe to The CenterWatch Monthly.

December 2012

Publicity, regulation tightening reins on use of KOLs
Debate rages over need to revamp how sponsors use, pay medical experts

Time may be right to makeover the investigator brochure
Size, complexity prevent critical document from being thoroughly read

Already a subscriber?
Log in to your digital subscription.

Purchase the December issue.

Subscribe to The CenterWatch Monthly.

JobWatch centerwatch.com/jobwatch

Featured Jobs

More Jobs

 

Copyright © 1995-2013 CenterWatch.