Kendle boosts outlook on services demand

The company now expects 2008 profit between $2 and $2.15 per share, up from prior guidance of $1.90 to $2.07 per share. Service revenue guidance is now expected to range from $490 million to $500 million, up from $450 million to $460 million.

Analysts polled by Thomson Financial expect profit of $1.90 per share on service revenue of $468.8 million.

Clinical research organizations, such as Kendle, have been reaping the benefits of research and development outsourcing from big pharma and biotech companies. Those drug developers have been outsourcing more of their work in an effort to trim and control costs. Kendle and its peers also foresee continued demand for their laboratory and drug testing services.

The company's second-quarter results and improved outlook buoyed shares Wednesday. The stock gained $3.83, or 9.4 percent, to reach $44.41 in midday trading. Shares have traded between $34.75 and $51.60 over the last 52 weeks.