For the second consecutive quarter, PRA Health Sciences boosted its net income guidance for 2015 after posting bottom-line results that exceeded expectations.
William Blair & Co. analyst John Kreger declared it “another impressive quarter” in a research note.
The Raleigh-based pharmaceutical services company reported its second-quarter results after the markets closed Monday. Earlier in the day, its shares rose $1.64 to $40.61, its all-time high since going public in November. PRA shares have risen 68 percent this year.
PRA’s adjusted net income for the second quarter was $29.7 million, more than double that of a year ago. That amounted to 47 cents per share, up from 34 cents per share a year ago. Analyst were expecting 40 cents per share.
Service revenue rose 8 percent to $336.5 million from a year ago. After adjusting for currency fluctuations, revenue rose 12 percent.
In a conference call with analysts, CEO Colin Shannon said the second quarter was “one of further progress for PRA across a whole host of financial and operating metrics.”
Net new business bookings, a leading indicator of future revenue, totaled $407.8 million. Kreger noted that was up 10 percent from a year ago $24 million above his estimate.
The company raised its guidance for earnings per share for the full year to $1.75 to $1.85, up from $1.62 to $1.72 previously.
However, the company’s revenue guidance for the year remained unchanged at between $1.34 billion and $1.39 billion.
Contract research organizations such as PRA help pharmaceutical and biotechnology companies test experimental drugs and analyze the results.
During the quarter, PRA launched its new Predictivv technology platform.
The new platform, which aims to optimize designing and managing clinical trials, is needed because of “the increasingly higher level of complexity in conducting clinical trials,” Shannon said. “We also believe the platform allows us to take advantage of the rapid changes in technology.”
PRA has more than 11,000 employees worldwide, including more than 450 locally.