Saturday, May 12, 2001
Stock of the week
Kendle International Inc.
Ticker: KNDL (Nasdaq).
Headquarters: Carew Tower, downtown.
Business: A contract research organization providing clinical research and drug development services to pharmaceutical and biotechnology industries.
The week: Shares of Kendle International rose this week $2.10, or 15 percent, to Friday's close of $15.89 from last week's close of $13.79.
The history: Friday's close is the highest since a June 1999 peak of $18.13 a share. The stock fell to $5.88 the following October after the company reported earnings one-third below what analysts had projected. Shares have mostly struggled around $10 ever since, while the company reported losses for three recent quarters.
The money: Kendle returned to profitability in the first quarter of 2001, earning 2 cents a share and beating the analysts' consensus estimate of 1.2 cents. The company reported May 3 that its profit for the first quarter fell to $262,000, or 2 cents a share, compared with net income of $1.7 million, or 14 cents a share, in the same period a year ago.
The quote: Increased operating efficiencies, continuing new business momentum and the improving industry environment helped Kendle International achieve our first quarterly profit since March 2000, Chairman and CEO Candace Kendle said. We are pleased to reach this critical point as the CRO industry begins to emerge from the challenges of 2000 and we are optimistic about the remainder of 2001.
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