On the same day that Quintiles (NYSE: Q) disclosed that its president and chief operating officer is leaving, the company also said business is looking pretty good.
However, Wall Street reacted negatively to all the news.
Quintiles shares plunged $4.11, or over 10 percent, shortly after the markets opened to their lowest price since the company went public again in May.
Shares fell to $40.10 before rallying. Prices were still down more than 4 percent at 10 a.m. More than 336,000 shares were traded, a number already above the daily average of some 317,000.
In its latest earnings report early Thursday, Quintiles increased its earnings forecast and says new business commitments are up 29 percent. However, revenue was flat in the just-completed quarter.
Quintiles also announced a $125 million stock buy-back plan, using “cash on hand.”
“We are pleased with our financial results for the third quarter. We continue to gain market share as reflected in the strength of our net new business and the largest backlog in the industry,” said Tom Pike, Quintiles’ chief executive officer, in a statement.
“It is an indication that our strategy and solutions are relevant to our customers as they address the opportunities and challenges of the changing healthcare landscape,” he added. “We have further differentiated our service offerings with the acquisition of Novella Clinical in the third quarter, strengthening our capabilities focused on emerging biopharma, oncology and medical devices.”
Novella Clinical is based in RTP.
Quintiles adjusted its earning guidance to $1.71 and $1.77 per share for the full year.
Revenue for the year is forecast to be between $3.77 billion and $3.80 billion.
For the quarter, services revenue totaled $932,727,000. That’s up from $ 913,588 a year ago.
Through nine months, service revenues increased to $2,804,400 from $2,746,537 last year.
Quintiles return to public markets in May. Its shares closed at $43.38.
The full earnings report can be read online.
