WILMINGTON,
N.C. (AP) — Drug development
contractor Pharmaceutical Product Development Inc. said Tuesday that its profit
surged in the fourth quarter on higher development and laboratory services
revenue.
Meanwhile, the company said CEO David L. Grange, 63, will
retire May 18. He became CEO in 2009 and has served as a director since 2003.
The board of directors is currently searching for a successor to Grange.
PPD earned $47.9 million, or 40 cents per share, compared
with $19 million, or 16 cents per share, during the same period a year prior.
Revenue rose 9 percent to $388.5 million from $357.4 million.
Analysts polled by FactSet expected 38 cents per share in
profit on $358.5 million in revenue.
For the full year, PPD said its profit fell to $124 million,
or $1.04 per share, from $159.3 million, or $1.34 per share, in 2009. The
decline was due mainly to charges as revenue rose to $1.47 billion from $1.42
billion.
Meanwhile, the company said it entered into a $200 million
accelerated stock buyback deal with Barclays Capital Inc. The company has $260
million remaining in the $350 million program.
In January, the company set guidance for 2011. It expects to
earn between $1.53 and $1.69 per share in 2011 on revenue of $1.48 billion to
$1.58 billion, while analysts expect profit of $1.58 per share on $1.54 billion
in revenue.
For the first quarter, the company expects income of 30
cents to 34 cents per share. During the second quarter, the company expects
profit between 36 cents and 40 cents per share. Looking further ahead, the
company said it expects third-quarter profit between 41 cents and 45 cents per
share and fourth-quarter profit between 46 cents and 50 cents per share.
Analysts expect first-quarter profit of 33 cents per share,
second-quarter profit of 38 cents per share, third-quarter profit of 42 cents
per share, and fourth-quarter profit of 46 cents per share.
Shares of PPD rose 19 cents to close at $28.19.
