Cambrex Lifts FY16 Forecast As Q2 Results Top Estimates - Quick Facts

(RTTNews) - Cambrex Corp. (CBM), a life sciences company, on Thursday lifted its forecast for fiscal 2016 earnings sales growth after reporting higher results in its second quarter.

For fiscal 2016, the company now expects adjusted income from continuing operations per share of $2.49 to $2.61, higher than previous estimate of $2.46 to $2.58.

On average, 4 analysts polled by Thomson Reuters expect earnings of $2.56 per share for the year. Analysts' estimates typically exclude special items

Adjusted EBITDA for the year is now projected to be $144 million to $149 million, a 12% to 16% increase compared to 2015, while previous estimate was $142 million to $148 million. The Company also lifted its guidance for full year sales, and now expects sales, excluding the impact of foreign currency, to increase between 10% and 13% from last year. The previous forecast was a growth of 8 percent to 12 percent from last year.

Steven Klosk, President and Chief Executive Officer, said, "Sales growth and profit margins year to date are in line with our outlook coming into the year and we expect continued strong growth in the second half of 2016. We saw growth across all product categories and we were also awarded two new late stage projects, demonstrating that we continue to be favorably positioned to take advantage of positive market dynamics."

For the second quarter, net income increased to $20.49 million from last year's $19.66 million. Earnings per share were $0.62, compared to $0.61 last year.

Adjusted income from continuing operations was $22.3 million or $0.68 per share, compared to $20.5 million or $0.63 per share last year.

Analysts expected earnings of $0.59 per share for the quarter.

Gross sales increased 12% to $119.05 million from $106.38 million a year ago. Sales grew 11% excluding the impact of foreign currency.

Net sales were $118.22 million, higher than $106.01 million a year ago. Analysts expected sales of $114.85 million.

The sales increase primarily reflected higher volumes in all of product categories, partially offset by lower pricing.