WuXi PharmaTech Q2 Profit Rises

(RTTNews) - Drug-research contractor WuXi PharmaTech (Cayman) Inc. (WX), Monday reported a surge in profit for the second quarter, driven mainly by strong performance at its China-based laboratory services segment. Looking ahead, the company lifted its guidance for fiscal year 2013.

Laboratory services revenue for the quarter grew 13.2 percent to $105.9 million, with China-based laboratory services up 18.6 percent while US-based laboratory services were down 3.2 percent year-over-year.

Manufacturing services division revenues declined 1.1 percent reflecting slightly lower demand.

China-based WuXi's second-quarter revenues grew 9.2 percent to $142.3 million from $130.4 million last year. Analysts polled by Thomson Reuters expected revenues of $147.29 million for the quarter.

The company's second-quarter profit surged to $29.6 million from $20.5 million last year. On a per-ADS basis, earnings increased to $0.41 from $0.28 last year.

Adjusted earnings for the quarter rose to $0.46 per ADS from $0.33 per ADS last year. On average, six analysts polled by Thomson Reuters expected earnings of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.

Gross margin for the quarter improved to 36.4 percent from 35.7 percent last year.

"By serving our customers well, we are achieving solid, broad-based revenue growth," Chief Executive Dr. Ge Li said. "We exceeded our second-quarter 2013 revenue guidance, driven by excellent performances by China-based Laboratory Services and Manufacturing Services."

Going forward, the company raised its full-year 2013 financial guidance. The company now expect earnings of $1.38 to $1.44 per ADS, adjusted earnings of $1.61 to $1.67 per ADS, and revenues of $572 million to 578 million. Analysts currently expect earnings of $1.53 per share on revenues of $573.63 million for the full-year.

Previously, WuXi expected earnings of $1.26 to $1.30 per ADS, adjusted earnings of $1.49 and $1.53 per ADS and revenues of $565 million to 575 million.

For the third quarter, the company expect earnings in the range of $0.32 to $0.34 per share, adjusted earnings of $0.38 to $0.40 per share, and revenues of $143 million to $145 million. Analysts currently expect earnings of $0.38 per share on revenues of $147.29 million for the quarter.

WX closed Monday's trading at $23.76, up $0.74 or 3.21%, on the NYSE. The stock further gained $0.08 or 0.34% in after hours trade.