Raymond James upgraded EResearchTechnology (ERES) to market perform from underperform.
Analyst James Kumpel says while eResearch announced just nine contracts in the third quarter of 2003 worth more than $20 million, the company announced 13 contracts ranging in value from $1 million to $3.9 million, also worth more than $20 million. He thinks diagnostic services provider is likely to report fourth-quarter earnings per share of 15 cents, on revenues of $21.3 million, topping consensus estimates of 13 cents and $19.5 million, respectively.
Kumpel raised the $101.4 million 2004 revenue estimate to $110.1 million, and upped the 71 cents earnings per share estimate to 77 cents. He expects to see a more stable near-term stock price as eResearch is entering the earnings season with the probability of a raised earnings outlook for 2004.