Development Inc. lowered its annual forecasts Wednesday, primarily because of the global economic slump.
PPD now expects a profit of $1.54 to $1.60 per share for the year, down from an earlier estimate of $1.97 to $2.05 per share. Revenue is expected to be between $1.4 billion and $1.47 billion, down from $1.6 billion to $1.67 billion.
Analysts expected $1.82 per share and $1.6 billion, according to a Thomson Reuters survey.
The company cut its estimates due to difficult business conditions. It also agreed to sell its Piedmont Research Center business during the first quarter, which will eliminate about $19 million in revenue for the discovery science unit.
Earlier this month, Charles River Laboratories International Inc. agreed to buy the Piedmont unit for $46 million. The deal is expected to close during the second quarter.
PPD said it expects a profit of 42 cents to 44 cents per share in the second quarter, including a gain of 14 cents per share from the Piedmont sale. It forecast a profit of 38 cents to 40 cents per share in the third quarter and 36 cents to 38 cents per share in the fourth quarter.
PPD also reported its first quarter results Wednesday. Its profit and revenue were about equal to analyst expectations.
PPD shares fell $4.01, or 18 percent, to $17.98 in premarket trading. Shares closed at $21.99 Tuesday.
