Pharmaceutical services company PRA Health Sciences posted double-digit revenue growth that enabled it to double its net income and breeze past Wall Street expectations.
The Raleigh-based company, which issued its fourth-quarter results after the markets closed Wednesday, also projected that its revenue for all of 2016 will rise 11 percent to 14 percent and that its adjusted net income per share will rise 16 percent to 21 percent, after adjusting for currency fluctuations.
“We are well-positioned for the coming year, as evidenced by our record level of new business awards and backlog ... and we look forward to delivering strong results in 2016,” CEO Colin Shannon said in a statement. PRA has scheduled a conference call for Thursday morning to discuss the results with analysts.
Service revenue totaled $362.3 million, up from $323.8 million a year ago and $9 million ahead of what analysts polled by Thomson Reuters had projected. Revenue rose 15.1 percent after adjusting for currency fluctuations.
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Adjusted net income totaled $37.5 million, up from $18.6 million a year ago. Adjusted net income per share totaled 59 cents, up from 35 cents a year ago and 10 cents more than analysts anticipated.
Net new business for the quarter totaled $459.4 million, contributing to a backlog of $2.4 billion.
PRA is a contract research organization, or CRO, that helps pharmaceutical and biotechnology companies conduct clinical trials and analyze the results.
For all of 2015, service revenue totaled $1.38 billion, up 8.6 percent. Revenue rose 12.2 percent after accounting for currency fluctuations.
Adjusted net income for 2015 totaled $126.3 million, up 127 percent. Adjusted net income per share rose 59 percent.
Earlier Wednesday, PRA shares rose 5 percent to $42.78. Its shares have fallen nearly 6 percent this year.