PAREXEL International Corporation
) rose nearly 1% following the announcement of its acquisition of
Istanbul, Turkey-based privately owned clinical research services
provider ATLAS Medical Services. The all-cash acquisition will
strengthen the position of PAREXEL in Turkey, the Middle East and
North African markets.
Founded in 2005, ATLAS operates with more than 28 biopharmaceutical
services companies including the Top 10. It has therapeutic
expertise in areas such as Oncology, Hematology, Endocrinology,
Cardiovascular, Anesthesiology, Infectious Diseases and the Central
Nervous System and provides services for all phases of clinical
ATLAS also provides clinical trial-related services, ranging from
study planning and feasibility to site selection, data management
and medical writing. These apart, it provides regulatory services
and support product registration. Last year, ATLAS generated
revenues of $4 million.
PAREXEL will integrate ATLAS' business into its Clinical Research
Services business. However, it is not going to materially impact
PAREXEL's revenues and earnings per share in fiscal 2015.
In the fiscal 2014-third-quarter, PAREXEL reported adjusted
earnings per share of 56 cents, beating the Zacks Consensus
Estimate by 3 cents. Earnings per share grew 12% from 50 cents in
the year-ago quarter. Adjusted net earnings rose 9.5% to $32.3
million from $29.5 million in the prior-year quarter.
Revenues increased 10.4% to $578.0 million from $523.5 million in
the third quarter of fiscal 2013, comfortably beating the Zacks
Consensus Estimate of $492 million. PAREXEL's backlog was
approximately $4.9 billion at the end of Mar 2014, an increase of
9.4% year over year.
PAREXEL ended fiscal 2014-third quarter with cash and marketable
securities of $298.7 million, up 3.6% from $288.4 million as of Mar
31, 2013. The company's long-term debt decreased 25.6% to $290.0
million from $390.0 million as of Mar 31, 2013. Consequently,
long-term debt-to-capitalization ratio fell 11.2 percentage points
to 30.2% from 41.4% a year ago.
For fiscal 2014, PAREXEL raised its adjusted earnings per share
guidance to a range of $2.11 to $2.15 from the prior range of $2.01
to $2.11. The current Zacks Consensus Estimate of $2.14 lies within
the guided range.
PAREXEL also raised its revenue guidance for fiscal 2014 to a range
of $1,936 to $1,942 million from the prior range of $1,920 to
$1,930 million. The current Zacks Consensus Estimate of $1,937
million also lies within the guided range.
Currently, PAREXEL has a Zacks Rank #1 (Strong Buy). Other medical
services stocks that are worth considering include
Quintiles Transnational Holdings Inc.
ICON Public Limited Company
). While Quintiles Transnational sports a Zacks Rank #1 (Strong
Buy), both ICON Public and Omnicare carry a Zacks Rank #2 (Buy).
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