PharmaNet Development Group plunges on weak 2008 forecast
PharmaNet Development Group Inc. (Nasdaq: PDGI) shares are plunging after the drug development services company forecasted a weaker-than-expected 2008 profit. For 2008, PharmaNet projects earnings of between $1.42 and $1.57 per share. Wall Street analysts, on average, expect earnings of $1.72 per share.
The Princeton, N.J.-based firm projects fiscal year revenue in the range of $401 million to $409 million. However, analysts project revenue of $414.8 million.
“We are pleased with our 2007 financial results, having made significant progress over the past year,” CEO Jeffrey McMullen said in a statement. “In 2008, we look forward to continued growth and market expansion, while optimizing our operations, increasing resource utilization and reducing costs.”
In a note to investors, Robert W. Baird & Co. analysts Eric Coldwell and Nicholas Juhle said that the fourth quarter was characterized by “a disappointing operational performance, lackluster business development metrics and 2008 guidance that appears below expectations.”
In Thursday’s trading, PDGI shares were down 30.79%, or $12.73, at $28.62. Over the last 52 weeks, shares have ranged from $19.49 to $43.05.
