Led by growth in its sales services business, pharmaceutical services giant Quintiles posted a better-than-expected 15 percent gain in net income for the second quarter and upped its guidance for the full year.
The Durham-based company reported before the markets opened Wednesday that adjusted net income totaled $98.7 million in the second quarter, up from $85.7 million a year ago. Adjusted net income per share totaled 78 cents, up 20 percent from a year ago and 8 cents better than analysts had projected.
Service revenue for the quarter rose 3.8 percent to $1.07 billion; revenue rose 9.8 percent after adjusting for currency fluctuations.
Quintiles shares rose $2.35, or 3 percent, to close Wednesday at $79.10. The stock is up 34 percent this year.
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The company’s healthcare services business, which helps drug companies sell and market prescription medicines, generated $288 million in revenue, up 22.9 percent after adjusting for currency fluctuations. The company’s larger product development business, which helps pharmaceutical and biotechnology companies test experimental drugs and analyze the results, rose 5.5 percent to $786.4 million..
Baird Equity Research analyst Eric Coldwell wrote in a research note that Quintiles’ increased guidance for 2015 is a sign that management is confident that its business will accelerate in the second half of the year.
Quintiles projected that revenue for the year, after adjusting for currency fluctuations, would rise between 8.5 percent and 9.5 percent this year. It previously had forecast growth of between 7 percent and 8 percent.
The company upped its guidance for net income per share for the year to between $3.09 and $3.19, up from between $3.02 and $3.13 previously.
Quintiles has more than 33,000 employees worldwide, including about 2,500 in the Triangle.