The 10-second takeaway
For the quarter ended Dec. 31 (Q2), PAREXEL International met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved, and GAAP earnings per share dropped significantly.
Gross margins expanded, operating margins dropped, net margins shrank.
PAREXEL International reported revenue of $333.2 million. The 10 analysts polled by S&P Capital IQ anticipated revenue of $334.3 million. Sales were 27% higher than the prior-year quarter's $304.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.23. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.23 per share on the same basis. GAAP EPS of $0.21 for Q2 were 25% lower than the prior-year quarter's $0.28 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 41.2%, 580 basis points better than the prior-year quarter. Operating margin was 6.1%, 300 basis points worse than the prior-year quarter. Net margin was 3.3%, 220 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $346.5 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $1.36 billion. The average EPS estimate is $1.13.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 263 members out of 273 rating the stock outperform, and 10 members rating it underperform. Among 94 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give PAREXEL International a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on PAREXEL International is outperform, with an average price target of $24.11.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.