PharmaNet Development Group misses Q2 income projections
Shares of PharmaNet Development Group, Inc. (Nasdaq: PDGI) are ailing on news the Princeton, N.J.-based drug developer reported a second-quarter profit that fell short of Wall Street’s forecast.
Before the opening bell the company said that net income for the three months ended June 30 was $3.2 million, or $0.17 per share, while four analysts polled by Thomson Financial were projecting a profit of $0.30 per share. For same period of 2006, PharmaNet reported a net income of $2.6 million, or $0.14 per share.
“While the early stage business performed better than expected, late stage earnings were negatively impacted by unrecognized revenue associated with unsigned change orders,” said Jeffrey McMullen, president and CEO.
Direct revenue, which does not include reimbursed out-of-pocket expenses, was $85.6 million, an increase of 17.5%, compared with $72.8 million in the second quarter of 2006.
At 3:53 p.m. ET the stock was down $1.77, or 6%, to $26.80.
