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What: Wuxi Pharmatech
So what: Non-GAAP EPS of $0.24 grew 29% from the year-ago quarter and beat the $0.21 consensus estimate. Revenue grew 20% year over year, driven by 59% growth in manufacturing services revenue.
Now what: Management stated it expects 2011 to be "another strong year," with revenue growth of 17% to 21% and stable margins despite labor cost inflation in China and yuan appreciation. Guidance did not mention net income or EPS but implied 2011 GAAP net income of about $70 million, down 23% from 2010 because of a tax rate increase, and non-GAAP EPS of about $1.06, up 19%. That gives the stock a forward P/E ratio of 16 times (and about 18 times GAAP EPS).
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Fool contributor Cindy Johnson does not own shares of any company named above. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.