« Return to News | CROs/Service Providers

Covance Revenues Up, Maintains Guidance

Thursday, January 29, 2009 04:21 PM

Covance released strong fourth quarter and year end 2008 financial results late Wednesday with revenue increases in both early and late-stage development segments.

Total fourth quarter net revenues were $439 million, up 6.7% from the same period last year. Net income for the quarter was $45.6 million, down 2.5% year over year, with diluted earnings per share of $0.72, down 0.6% from the same quarter last year.

Net revenues for early development were $214.2 million, up 3.1% from $207.9 million in the fourth quarter of 2007. Late-stage development revenues were $224.4 million, up 10.5% from $203.1 million in the same period last year.

While both early- and late-stage development revenues were up, profitability for the early-stage segment declined to 21.4% from 24.8% for the fourth quarter last year.

"Reduced demand in our Early Development segment from a combination of a lower level of new project initiations and increased project delays in our toxicology and clinical pharmacology services led to a sequential decline in segment revenue and operating income," said Covance chairman and CEO Joe Herring in a company release.

Covance’s late-stage development segment increased its operating margin from 16% in Q4 2007 to 19.6% in the fourth quarter of 2008.

Because of the strength in its late-stage development segment, Covance maintained its 2009 full-year revenue growth guidance of 5% to 10% year over year and earnings per share in the range of $3 to $3.20.

In afternoon trading, Covance’s share prices were up almost 8% to $39.72.

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.