Cambrex shares soar as 2Q results top estimates
Shares of Cambrex Corp. jumped Wednesday after the maker of active drug ingredients reported stronger-than-expected results for the second quarter.
Cambrex said its profit was unchanged at $4.8 million, or 16 cents per share. Its results a year ago included a gain of 4 cents from discontinued operations. Net sales climbed 17 percent, to $67 million from $57 million. The East Rutherford, N.J., company posted its results after the market closed on Tuesday.
The two analysts who reported estimates to FactSet expected a profit of 13 cents per share and $61.9 million in revenue on average. Shares of Cambrex rose $1.20, or 28.4 percent, to $5.45 in afternoon trading.
Cambrex said its sales got a large boost from weakness in the U.S. dollar, which increased its sales overseas. Excluding the changes in currency exchange rates, sales rose 7 percent. Cambrex attributed that to greater sales of large custom manufacturing products, and increased sales volumes of active ingredients for generic drugs.
Its profit was flat because of greater selling, general and administrative costs.
The company maintained its annual forecasts. It expects sales to grow 3 to 7 percent this year if changes in currency exchange rates are excluded.