WuXi PharmaTech (药明康德) announced a 5% increase in Q1 revenues, but net income fell 15% and earnings per share dropped an even-greater 22% during the period. Stressing the positive, WuXi said its core business, China CRO laboratory services, rose a healthy 33%. The problem was in contract manufacturing, whose revenues sank by 81%. Evidently, WuXi has done a good job of preparing Wall Street for even worse results, because shares of WuXi moved sharply higher following the earnings announcement. More details...

Stock Symbol: (NYSE: WX)