Syneos Health Inc (NASDAQ: SYNH) stock surged over 9.7% on 19th March, 2019 (as of 11:19 am GMT-4; Source: Google finance) after the company posted better than expected results for the fourth quarter of FY 18. Adjusted net income under ASC 605 during the three months and year ended December 31, 2018 was $110.5 million and $330.0 million, respectively. Adjusted net income and Combined Company adjusted net income under ASC 605 during the three months and year ended December 31, 2017 was $74.1 million and $238.3 million
SYNH in the fourth quarter of FY 18 has reported the adjusted earnings per share of 95 cents, beating the analysts’ estimates for the adjusted earnings per share of 81 cents, as per Zacks Investment Research. The company had reported the adjusted revenue growth of 52.6 percent to $1.15 billion in the fourth quarter of FY 18, which is in line with the analysts’ estimates for revenue of $1.15 billion. GAAP service revenue for the year ended December 31, 2018 was $4.39 billion, an increase of $2.54 billion, or 136.9%, compared to $1.85 billion in 2017. These increases were primarily due to the inclusion of reimbursable revenue in service revenue as a result of the adoption of ASC 606 and the Merger with inVentiv Health in August 2017. GAAP Clinical Solutions service revenue for the three months and year ended December 31, 2018 was $821.2 million and $3.21 billion, respectively. Under ASC 605, the Clinical Solutions segment generated $562.3 million of adjusted service revenue during the three months ended December 31, 2018, representing an increase of $23.2 million or 4.3%, compared to $539.1 million during the three months ended December 31, 2017. This increase was primarily due to revenue from strong net awards in 2018, partially offset by the unfavorable impact of foreign currency exchange rates.
Moreover, SYNH is currently working with its lenders to refinance its existing Term Loan A and revolving credit facilities. The Company expects the new facilities to close prior to March 31, 2019 and mature five years from closing.
For FY 19, SYNH expects adjusted service revenue to be in the range of $4,620 and $4,730 million, Adjusted EBITDA is expected to be in the range of $625 million & $660 million and Adjusted diluted EPS is expected to be in the range of $3.03-$3.23. The company anticipates that its 2019 effective tax rate will be between 24.0% and 25.0%.