Parexel International Corp. (PRXL: Quote), a bio/pharmaceutical services organization, Monday said its third-quarter profit increased from last year amid an over 18 percent growth in revenues. Further, the company said its operating margins in the near term may be hurt by some investments related to client projects. The company cut its adjusted earnings forecast for the fiscal year, but lifted its revenue view.
Net income for the quarter increased to $22.87 million or $0.38 per share from $15.7 million or $0.26 per share in the year-ago quarter. The profit was mainly driven by higher service revenues.
Excluding items, net income grew to $0.33 per share from $0.27 per share. On average, 12 analysts polled by Thomson Reuters expected the company to earn $0.31 per share for the third quarter. Analysts' estimates typically exclude special items.
Consolidated service revenue for the period increased to $356.0 from $301.4 million last year. Analysts expected revenues of $352.18 million for the quarter.
On a segment basis, revenue from Clinical Research Services amounted to $263.4 million, PAREXEL Consulting and Medical Communications Services generated $43.3 million and Perceptive Informatics revenues were $49.3 million.
Backlog at the end of March was around $4.224 billion, up 32.5 percent from last year.
Further, the company said its investments in delivery capacity to service client projects are expected to have a negative impact on operating margins in the near term. These investments will enable revenue and margin growth over the longer term.
Looking ahead to the fourth quarter of 2012, the company expects earnings in the range of $0.28 to $0.30 per share. Analysts currently expect fourth-quarter earnings of $0.37 per share.
Fourth-quarter consolidated service revenues are forecast to range between $376.0 million and $381.0 million. Wall Street looks for revenues of $366.43 million for the period.
For the fiscal-year ending June 2012, earnings are currently forecast in the range of $1.03 to $1.05 per share, compared to the prior estimate of $1.01 to $1.09 per share. Adjusted earnings are expected to range between $1.04 and $1.06 per share, compared to the previous estimate of $1.09 to $1.17 per share. Analysts currently expect earnings of $1.12 per share for the fiscal year 2012.
Consolidated service revenue is currently expected to be in the range of $1.380 billion to $1.385 billion, up from $1.360 billion to $1.375 billion announced previously. Analysts currently expect revenues of $1.37 billion for the period.
PRXL, which closed Monday's regular trade lower by $0.48 or 1.75 percent at $26.94, fell 7.2 percent in the extended trade.
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by RTT Staff Writer
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