RALEIGH – PRA Health Sciences is in really good health rinancially right now, but looking ahead it warned on Wednesday that the pandemic clouds the future.
“The full extent of the COVID-19 pandemic and its impact on our fourth quarter operations continues to remain uncertain,” the company warned in its quarterly financial report.
“Specifically, the duration of the pandemic, the geographic location of specific outbreaks, and the length and scope of travel restrictions and business closures imposed by the governments of impacted countries could impact our financial results in the fourth quarter of 2020. These uncertainties could impact the assumptions used in the Company’s 2020 guidance if they result in business interruptions, such as the closure of our Phase I clinics, a slowdown in recruitment activities, or limited access to sites worldwide. However, the Company has used its best efforts to estimate the impact of COVID-19 on its business and the resulting impact on financial performance for the remainder of the year.”
PRA (:nasdaq:PRAH) reported third-quarter earnings of $91.3 million. On a per-share basis, the Raleigh, North Carolina-based company said it had net income of $1.41. Earnings, adjusted for one-time gains and costs, came to $1.30 per share.
The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.13 per share.
The contract research organization posted revenue of $796.3 million in the period, also exceeding Street forecasts. Five analysts surveyed by Zacks expected $767.8 million.
PRA Health Sciences expects full-year earnings in the range of $4.61 to $4.71 per share, with revenue in the range of $3.12 billion to $3.15 billion.
“I am very appreciative of the effort and focus of all of our employees despite the difficult health circumstances in the world today,” said Colin Shannon, PRA’s President and Chief Executive Officer.
“As a result of this commitment, I am very pleased to report revenue and earnings that were significantly better than the guidance we provided in August and an increase to our 2020 guidance. I am also happy to report another quarter of record level gross and net new
“Although we continue to experience challenges with the pandemic, we believe we will finish 2020 strong and are well-positioned for 2021.”