PPD, Inc. (PPD) Tops Q2 EPS by 3c, Revenues Beat; Offers 3Q Revenue Guidance Above Consensus

PPD, Inc. (NASDAQ: PPD) reported Q2 EPS of $0.25, $0.03 better than the analyst estimate of $0.22. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $925.6 million.

Highlights

• Net authorizations of $1,052.2 million, representing 12.4% growth over second quarter 2019 and resulting in a net book-to-bill ratio of 1.34x on a historical basis
• Ending backlog of $7,581.3 million, representing 13.3% growth over second quarter 2019 on a historical basis
• Revenue of $1,010.9 million, representing growth of 1.4% over second quarter 2019
• Net loss attributable to common stockholders of $9.1 million, compared to net income of $25.7 million for the second quarter 2019
• Adjusted EBITDA of $194.4 million, representing growth of 0.8% over second quarter 2019
• Total liquidity of $991.4 million as of June 30, 2020, an increase of 11.8% over the first quarter of 2020
• Further reduced cost of capital through repayment of revolver borrowings, redemption of senior notes due 2023 and issuance and sale of new senior notes due 2025 and 2028
• Third quarter 2020 guidance for revenue of $1,065 million to $1,085 million; adjusted EBITDA of $211 million to $215 million

“We are very pleased with our commercial and financial results for the second quarter,” said David Simmons, PPD’s Chairman and CEO. “Our team has done an excellent job delivering for our customers despite the challenges presented by the COVID-19 pandemic. We are continuing to take necessary precautions to ensure the safety of our employees and patients while resuming delayed activities on both ongoing and new studies where possible. As the life sciences industry and regulators come together to develop vaccines and therapies for COVID-19, PPD is proud to have won more than 85 awards related to the virus.”

GUIDANCE:

PPD, Inc. sees Q3 2020 revenue of $1.065-1.085 billion, versus the consensus of $1.04 billion.

Should site access, patient enrollment and other key operating metrics continue to improve at the same pace that they have over the last several months, PPD expects year-on-year growth rates for fourth quarter 2020 revenue and adjusted EBITDA to be similar or higher than third quarter 2020. Additional details on the expected operational and financial impacts of the COVID-19 pandemic and management's outlook for the third and fourth quarters of 2020 will be provided during PPD’s second quarter 2020 earnings conference call.

For earnings history and earnings-related data on PPD, Inc. (PPD) click here.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Genco rejects Diana Shipping takeover bid as undervalued