On March 19, Zacks Investment Research upgraded
PAREXEL International Corporation
) to a Zacks Rank #2 (Buy).
ENVISION HLTHCR (EVHC): Free Stock Analysis
ICON PLC (ICLR): Free Stock Analysis Report
PAREXEL INTL CP (PRXL): Free Stock Analysis
QUINTILES TRANS (Q): Free Stock Analysis
To read this article on Zacks.com click here.
Why the Upgrade?
PAREXEL has been witnessing rising earnings estimates on the back
of strong second-quarter fiscal 2014 (ended Dec 31, 2013) results
and an enhanced guidance for fiscal 2014. Moreover, this MA-based
biopharmaceuticals outsourcing services organization has
delivered positive earnings surprises in 3 of the last 4 quarters
with an average beat of 14.83%. The long-term expected earnings
growth rate for this stock is 14.25%.
PAREXEL reported second-quarter fiscal 2014 results on Jan 29.
Adjusted earnings per share came in at 51 cents, surpassing the
Zacks Consensus Estimate of 48 cents by 6.25% and the company's
prior-year earnings by 24%.
Earnings were primarily aided by healthy top-line growth of 15.4%
in the reported quarter, which was driven by $14 million in
contributions from acquisitions. Also, a strong improvement of
220 basis points in the quarter's operating margin boosted
Based on its progress, the company raised its adjusted earnings
per share projection for fiscal 2014 to $2.01-$2.11 from
$1.97-$2.11 projected earlier. Management also lifted its net
sales guidance for the fiscal from $1.895-$1.925 billion to
The Zacks Consensus Estimate for earnings for fiscal 2014
increased 1.5% to $2.05 per share as 8 of the 11 estimates were
revised higher over the last 60 days, with no downward revisions.
The current Zacks Consensus Estimate lies within the guidance
range provided by PAREXEL. For fiscal 2015, 5 estimates
were revised higher over the same time frame, lifting the Zacks
Consensus Estimate by 0.4% to $2.42 per share.
Other Stocks to Consider
In the Medical Services space,
ICON Public Limited Company
Envision Healthcare Holdings, Inc.
Quintiles Transnational Holdings Inc.
) are also performing well. All of these stocks hold a Zacks Rank
#1 (Strong Buy).