Parexel International Earnings: Here’s Why the Stock is Down Now

Parexel International Corp. (NASDAQ:PRXL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.17%.

Parexel International Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 47.06% to $0.50 in the quarter versus EPS of $0.34 in the year-earlier quarter.

Revenue: Rose 1.17% to $463.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Parexel International Corp. reported adjusted EPS income of $0.50 per share. By that measure, the company beat the mean analyst estimate of $0.43. It beat the average revenue estimate of $455.24 million.

Quoting Management: Mr. Josef H. von Rickenbach, PAREXEL’s Chairman and Chief Executive Officer, stated “Fiscal Year 2013 was a very productive and successful year for the Company. Many of our plans and investments paid off, and our progress was well received by the market. We delivered strong revenue growth of 24%, and grew EPS by 53%. A year ago there were many questions about our ability to improve operating margin. Our results demonstrate that we are on the right path toward achieving our short and long-term goals. We ended the fourth quarter with an adjusted operating margin of 8.6%, slightly above our guidance, and up significantly from the fourth quarter of Fiscal Year 2012. We also optimized our capital structure by refinancing our debt and initiating a private placement of debt, and returned nearly $200 million of capital to our shareholders through our stock buyback programs.”

Key Stats (on next page)…

Revenue decreased 11.53% from $523.45 million in the previous quarter. EPS were the same at $0.50 as the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.42 to a profit $0.44. For the current year, the average estimate is a profit of $1.62, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)