UBS Warburg Trims Albany Molecular Estimates

Analyst Iris Francesconi says revenues were slightly lower than expected

UBS Warburg lowered its earnings estimates on drug research firm Albany Molecular Research (AMRI ) after the company bosted slightly lower than expected revenues. The company reported second quarter net income of $8.5 million versus $5.8 million on a 42% revenue rise.

Analyst Iris Francesconi said total revenues were slightly below expectations due to the lower than anticipated Allegra royalties. Otherwise, results were essentially in line with estimates, she says. She says positive results are currently overshadowed by potential near term phasing out of its contract with duPont, which currently contribute about 19% to contract revenues. Still, Francesconi doesn't regard this as a devastating event. She is maintaining a strong buy on the stock while cutting 2002 earnings per share estimate to $1.14 from $1.19.

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