INC boosts its outlook after another big revenue quarter

INC Research ($INCR) is ticking up its revenue expectations for 2015 after turning in another quarter of sales growth, counting on its expanded operation to keep contracts rolling in.

The CRO cleared $234.5 million in the third quarter, a 15.4% increase over the prior year that topped analysts' estimates. The growth came from all of INC's therapeutic area-focused units, the company said, with particularly strong performances in central nervous system studies and oncology.

INC's profits more than tripled to $44.3 million, also beating Wall Street's projections.

Now, the company is dialing up its full-year revenue guidance by about 1% at midpoint, expecting between $910 million and $914 million in 2015. INC is also increasing its earnings per share guidance by about 24%, projecting profits between $1.84 and $1.93.

INC's backlog grew about 17% to $1.8 billion on the quarter, with net new business of $327.7 million representing a book-to-bill ratio of 1.4.

"These results further underscore the success of our approach in leveraging therapeutically-aligned teams, our proven Trusted Process clinical trial methodology and best-in-class site relationships to deliver unmatched Phase I-IV global clinical development programs for our customers," CEO Jamie Macdonald said in a statement. "... In a robust market and with strong growth prospects, we are confident in the future outlook for the Company and as a result are increasing our earnings expectations for full-year 2015."

- read the results

Suggested Articles

The money will be used to expand its footprint in both China and the U.S., including a new R&D operation in Boston.

Aetion has raised $50 million so far, and it plans to enhance its platform to support more complex therapeutic areas and expand its team.

Charles River partners with PathoQuest to offer clients NGS solutions for biologics viral contamination testing and cell-line genetic characterization.