WuXi Profit Tops Street; Stock Down On Weak Q1 Outlook - Update

(RTTNews) - Chinese medical research company WuXi PharmaTech (Cayman) Inc. (WX), Wednesday reported a near 38 percent jump in fourth-quarter profit, mainly on double-digit revenue growth, with results topping Wall Street estimates.

But WuXi provided some weak earnings outlook for the first quarter, dragging its stock down 5.5 percent in after-hours trade on the New York Stock Exchange.

WuXi operates as a pharmaceutical, biotechnology, and medical device research outsourcing company.

Shanghai, China-based WuXi posted fourth-quarter net earnings of $33 million or $0.45 per American Depositary Share, or ADS. This compares with $24 million or $0.33 per ADS last year.

Excluding items, adjusted earnings for the quarter were $39 million or $0.53 per ADS, compared with $27.5 million or $0.38 per ADS in the prior year.

On average, three analysts polled by Thomson Reuters expected earnings of $0.43 per ADS for the quarter. Analysts' estimates typically exclude special items.

Revenue for the fourth quarter climbed to $157.2 million from $125.7 million in the prior year. Analysts expected revenue of $155.8 million for the quarter.

Revenue in China was up 29 percent and U.S. revenue climbed 5.6 percent.

Revenue growth were due mainly to good performances by small-molecule manufacturing, biologics, and integrated drug discovery services, said Chief Executive Ge Li.

For the first quarter, WuXi projects net earnings of $0.31 to $0.33 per ADS, adjusted earnings of $0.36 to $0.38 per ADS and revenue of $143 million to $145 million. Analysts currently expect earnings of $0.41 per ADS on revenue of $153 million for the quarter.

For fiscal year 2014, the company expects net earnings in the range of $1.68 to $1.73 per ADS, adjusted earnings of $1.95 to $2.00 per share and revenue of $660 million to $670 million. Analysts estimate earnings of $1.90 per ADS on revenue of $666 million.

WuXi stock closed Monday at $39.37, up $0.08 or 0.20%, on a volume of 1 million shares. In after hours, the stock dropped $2.17 or 5.51% at $37.20.