Golf Clap for PAREXEL International

PAREXEL International (NAS: PRXL) reported earnings on Jan. 30. Here are the numbers you need to know.

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.

Revenue details
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.

EPS details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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.

Over the decades, small-cap stocks, like PAREXEL International have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

At the time thisarticle was published 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 ofMotley 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.