Breaking News From Pharma & Bio Ingredients
Draxis Health 2Q Profit Rises 4 Percent
Posted on 2005-08-11 10:58:00
Specialty pharmaceutical company Draxis Health Inc. said Thursday its second-quarter profit rose 4 percent on increased sales, but missed Wall Street estimates, sending its stock lower.
Shares of the Canada-based company fell 8.3 percent, to $4.93 in morning trading on the Nasdaq. Its shares have fluctuated over the past 52 weeks from a low of $3.48 last August to a high of $5.84 in April. The company's stock is trading nearly flat year-to-date.
Quarterly income grew to $2.4 million, or 6 cents per share, from $2.2 million, or 6 cents per share, a year ago. Revenue rose 23 percent to $20.4 million from $16.7 million last year.
Analysts surveyed by Thomson Financial expected higher earnings per share of 7 cents on revenue of $22.3 million.
Gross margins dipped slightly to 37.6 percent from 38 percent a year ago, but operating margins fell more dramatically to 12.7 percent from 16.9 percent. The company said the late startup of certain production areas in the quarter affected revenue. Draxis also said that steps to improve supply chain management and documentation control processes put short term pressure on selling, general and administrative expenses.
However, the company said it remains on track to meet its guidance for the year. The company previously forecast full-year earnings of 27 cents to 30 cents per share on revenue of $88 million to $92 million. Last year, the company earned 21 cents per share on $57.8 million in sales.
Subscribe via RSS
