posted a record first quarter, but only managed to meet analysts' expectations.
The Valley Forge, Pa.-based company had net income of $108.5 million, or 94 cents a share, on revenue of $13.35 billion in its fiscal first quarter ended Dec. 31. That compares with $92.7 million, or 84 cents a share, on revenue of $12.43 billion a year ago. Analysts' consensus forecast was for 94 cents a share, according to Thomson First Call.
Shares in the drug services company have slumped since it announced late last year that it had failed to win renewal of a major contract with the Department of Veterans Affairs, which prompted the company to trim its full-year 2004 forecast. The contract expires in March.
In its news release, the company made no specific reference to that contract, which was transferred to rival
, but said: "Our recently revised earnings expectations for fiscal year 2004, which reflects the loss of a major customer, remain unchanged." The company's forecast is for $4.10 to $4.20 a share, vs. a $4.14 consensus estimate.
The company's stock closed at $56.25 Friday, well off its 52-week high of $73.44.