WuXi PharmaTech Q1 Profit Tops View - Update

(RTTNews) - Drug-researcher WuXi PharmaTech Inc. (WX), Wednesday said its first-quarter profit dropped slightly from a year ago, as higher expenses offset a jump in revenues, with both earnings and revenues coming in ahead of analysts estimates.

Shanghai, China-based WuXi PharmaTech's first-quarter profit dropped to $17.79 million or $0.25 per ADS from $17.82 million or $0.24 per ADS last year.

Adjusted earnings for the quarter rose to $25.6 million or $0.36 per ADS from $22.3 million or $0.30 per ADS a year ago. On average, six analysts polled by Thomson Reuters estimated earnings of $0.32 per share for the quarter. Analysts' estimates typically exclude special items.

WuXi's first-quarter revenues grew 22.7 percent to $180.0 million from $146.7 million last year. Analysts had a consensus revenue estimate of $174.2 million for the quarter.

Laboratory services revenue for the quarter grew 20.6 percent, while small-molecule manufacturing services division revenue jumped 14.8 percent. Biologics services revenues rose 74.6 percent, while new business and other increased 44.6 percent.

Gross margins decreased year over year to 34.9 percent from 36.6 percent, hurt largely by increased labor costs in China and investments in business expansion.

Looking forward to the second quarter, WuXi expects adjusted earnings of $0.38 to $0.40 per ADS on revenues of $194 million to $196 million. Analysts currently expect earnings of $0.42 per ADS on revenues of $193.6 million.

For the full year 2015, the company continues to expect adjusted earnings of $1.73 to $1.78 per ADS on revenues of $790 million to $800 million. Analysts currently expect earnings of $1.76 per ADS on revenues of $793.5 million.

WX closed Wednesday's trading at $43.10, up $0.12 or 0.28%, on the NYSE.