Parexel (PRXL) Tops Q2 EPS by 1c

After the close, Parexel (NASDAQ: PRXL) reported Q2 EPS of $0.85, $0.01 better than the analyst estimate of $0.84. Revenue for the quarter came in at $534.4 million versus the consensus estimate of $537.3 million.

"We were satisfied with our adjusted EPS results in the second quarter,” said Josef von Rickenbach, Chairman and Chief Executive Officer of PAREXEL International. “Revenue growth in the quarter was relatively modest mainly due to the lingering impact of cancellations in prior periods, continuing slower backlog conversion due to increasing clinical trial complexity, and revenue delays from recent awards. As we expect recent strong new business awards to contribute less near-term revenue than we had anticipated, we are lowering our forecast for Fiscal Year 2017 revenue and diluted EPS.

“We are encouraged by the long-term revenue opportunity from our continuing strong new business awards. Cancellations in the second quarter returned to the normal range from the elevated levels of the first quarter. Our strong new business performance continues to drive solid backlog growth.

“We continue to adapt our organization to our revenue base in order to maximize our operational efficiency,” Mr. von Rickenbach concluded. “We announced a restructuring program in January. With the help of this and other initiatives, we anticipate significant improvement in adjusted operating margin in the fourth quarter of Fiscal Year 2017 and beyond.”

For earnings history and earnings-related data on Parexel (PRXL) click here.

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