Yes; it is running rich. WAY TOO RICH!

Turn the High speed needle in a turn and see how it works, as you turn it in you will be reducing the amount of fuel and the engine will start to run smoother and faster.

If this is a new engine peak out the speed (RPM) using a Tach and then richen it up (turn the needle out) a half a turn during break in . It should idle around 11-12,000 RPM.

Break in should be about 1 gallon of fuel (depending on the engine) then you can lean out the engine for more speed.

Good Luck!