eResearch Reassuring Conference Call Sparks Recovery

In the aftermath of a Leerink Swann mid-July downgrade that wiped out about 25% of EResearch Technology Inc. (ERES) market cap, the stock is trying to recover. In what could be called a reassuring conference call on Monday, management announced positive guidance – reiterating full year 2008 revenue of between $133 million to $140 million, said new bookings came in at $49.0 million for the quarter, an increase of 42.0% from the 34.5 million in the same period last year and most importantly, refuted the argument of competition to its cardiac safety services from automated methods, the main thesis for that analyst rating change to “underperform.” That is probably as good a reason as any for yesterday’s curiously delayed 9.1% post-earnings move up on heavy volume of 1.2 million shares. The gain puts eResearch shares back on track.