PAREXEL Updates Q4 GAAP EPS Guidance; Issues FY17 Outlook - Quick Facts

(RTTNews) - PAREXEL International Corp. (PRXL) announced the company continues to expect its fourth-quarter non-GAAP EPS in the range of $0.89-$0.97, and revenue in a range of $528-$538 million. However, the company updated its fourth-quarter GAAP EPS to be in a range of $0.79-$0.87 compared to previous guidance range of $0.87-$0.95.

For fiscal 2016, the company reiterated its non-GAAP EPS, and revenue guidance. GAAP EPS is now expected to be in a range of $2.85-$2.93 compared to prior outlook of $2.93-$3.01.

For fiscal 2017, the company expects: non-GAAP EPS in a range of $3.75-$4.03; GAAP EPS of $3.68-$3.96; and revenue in a range of $2.175-$2.205 billion. The company reiterated its long-term financial goals, including: 10-12% annual revenue growth, 100-120 basis points of annual adjusted operating margin improvement, with the long-term goal of an adjusted operating margin range of 14-16%; and 15-20% annual adjusted EPS growth.

Ingo Bank, CFO, stated: "In recent years, we have seen strong growth in new business and backlog but also a delay in converting backlog into revenue. This has been caused by a trend toward smaller, more complex clinical trials, particularly those in oncology, which take longer to start and complete. We expect this trend to continue in Fiscal Year 2017, when we project revenue growth of 4-5.5%, with year-over-year growth rates likely to improve throughout the year. We believe that during the latter part of Fiscal Year 2017, the prolongation of trials will have reached steady state, at which point revenue growth should start to align more closely with backlog growth."