Covance, Inc. closed its books in Dec 2006 with a big growth in earnings and savings. Being one of the world’s largest and most comprehensive pharmaceutical research, development and manufacturing services companies, Covance is looking forward for more in 2007.
Yahoo! Finance reports:
- EPS was $2.24, including a $0.04 per share gain from the favorable resolution of several income tax matters during the third quarter.
- Excluding the income tax gain, earnings were $2.20 per share, representing year-over-year EPS growth of 25.1%, with both periods including stock-based compensation expense and excluding the $0.07 per share repatriation-related income tax charge in 2005.
- At least 25% earnings growth for our shareholders for six consecutive years.
- Strong repeat work and 33% growth in our backlog to more than $2.2 billion.
- In the fourth quarter, overall revenue growth was 6.4%.
According to Joe Herring, Covance’s Chairman and Chief Executive Officer:
“Our focus on productivity enhancements and the expansion of Six Sigma programs continued to pay dividends as evidenced by the 120 basis point expansion in operating margin to 14.4% for the full year and culminating in a very strong 15% performance in the fourth quarter. In addition, Covance delivered strong free cash flow of $23.8 million in the fourth quarter, and we reduced our DSO to 49 days, the lowest level in three years. In 2007, we expect low- to mid-teens revenue growth and earnings of at least $2.63 per diluted share.”
Source:
Yahoo! Finance, “Covance Reports 4Q EPS of $0.59 & Sixth Consecutive Year of 25% EPS Growth” with link provided by iSixSigma.
