Inveresk Research Group Inc. (Nasdaq: IRGI) reported third-quarter net income of $7.3 million, or 20 cents per share, as compared to a net loss of about $2 million, or 8 cents per share, in the third quarter a year ago.
Its stock jumped more than 5 percent to $21.15 a share in midday trading.
Due to the company’s better than expected Q3 results, Inveresk increased fourth-quarter EPS guidance by 10 percent from 21 cents to 23 cents, giving full year pro forma EPS of 85 cents to 87 cents.
The Cary-based company attributes its higher than expected results to the continued strength of trading in its pre-clinical and clinical development businesses, improved activity levels in its Phase I clinical trials operations, a positive foreign exchange impact and a reduced average tax rate.
“Today’s announcement of strong earnings and new business signings reflects our ability to deliver quality and high value added drug development services to our clients,” Walter Nimmo, president and chief executive officer of Inveresk, said in a statement. “The solid revenue gain and new business signings demonstrates once again the confidence our clients place in Inveresk Research and its employees as providers of quality, high value-added drug development services.”
For the first nine months of 2002, Inveresk posted a net loss $37.4 million, or $1.35 per share, as compared to a net loss of $5.4 million, or 26 cents per share, in the same period a year ago.
Inveresk’s net service revenue for the third quarter of 2002 was $55.9 million, as compared to net service revenue of $46.8 million in the third quarter of 2001. Its net service revenue for the first nine months of 2002 was $164.6 million, as compared to $109 million for the same period a year ago.