Hello Friends! Thanks for stopping by. I saw this stock earlier today and as I listed in the previous post picked up 200 shares at $29.22. Pharmaceutical Product Development (PPDI) had a nice day today closing at $29.16 ($.06 below what I paid....so in case you would like to get in...I am not ahead of you!), up $3.40 on the day or 13.20%. The stock was up today, as are so many issues, on news of an earnings release that came out yesterday after the market closed.
As reported on Yahoo.com from PRNewswire-FirstCall, PPDI reported results for its third quarter ended September 30, 2003. Net revenue for the quarter excluding "reimbursed out-of-pockets" of $12.9 million was $166.6 million, an increase of 14% over the same quarter in 2002. Net income, excluding the gain on the sale of assets was $34.8 million, an increase of 25% over the same period last year. This worked out to $.41/share, a 24% increase over the 2002 3rd quarter results.
Looking at Morningstar.com, we find overall a very nice report: Revenue growth from $246.5 million in 1998 increased each year: $302.5 million in 1999, $372.7 million in 2000, $460.6 million in 2001, $608.7 million in 2002 and $681.4 million in the trailing twelve months.
Earnings per share have also increased each year: $.44 in 1998, $.57 in 1999, $.64 in 2000, $.94 in 2001, $.72 (oops the hiccup) in 2002, and $1.37 in the trailing twelve months.
Recently, free cash flow has been on the rise: $40 million in 2000, $59 million in 2001, $69 million in 2002, and $72 million in the trailing twelve months.
And how about the balance sheet? As reported on Morningstar.com, PPDI has $198.1 million in cash, $248.0 million in other current assets which is more than enough to cover the $212.5 million in current liabilities and the small $21.5 million in long-term debt.
PPDI has a market cap of $1.63 Billion per Yahoo. The trailing p/e is a very reasonable 18.80 with the forward p/e (looking at fye 31-Dec-04) is only 13.42. The PEG ratio is downright cheap at 0.79, and price/sales isn't too bad either at 2.11.
Yahoo reports that there are 55.92 million shares outstanding and 48.10 million of them that float. As of 9/8/03, there were 1.12 million shares out short representing 2.667 days of trading volume. Last month there were 1.58 million shares out short, so a third of the short sellers have "folded." No dividend is paid. The last stock-split was a 2:1 in May of 2001.
As you can tell, I like this stock a lot. In fact I like it SO MUCH that I BOUGHT 200 shares today :). I hope it was a good move. I sure think the stock looks great on multiple fronts: recent quarter solid, last 5 years solid revenue/earnings growth, increasing free cash flow last several years, clean balance sheet with current assets easily covering both current liabilities and long-term debt, p/e at reasonable level, with PEG ratio under 1.0. Price/sales not bad at 2.11. Anyhow, that's enough of my plug. I DO own some shares of this...and am now down 6 cents.
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