Biopharmaceutical Services Company Parexel International Corp. reported its quarterly numbers. The company showed a 23 percent decline in second-quarter profit. Lower margins from its operations were one reason why the company was not able to enjoy a decent quarter. The earnings have missed the expectations and projections of various research agencies. Analysts expect $1.52 billion for the year 2012. For fiscal year 2012, the company now expects earnings in a range of $1.01 to $1.09 per share, and adjusted earnings of $1.09 to $1.17 per share.
The company has also tightened its quarterly estimates. The company stocks however moved the other way post the announcement. Parexel stock rose ten percent in after-hours trade. Net income for the quarter dropped to $12.9 million or $0.21 per share from $16.8 million or $0.28 per share last year. Excluding items, adjusted earnings for the quarter decreased to $13.9 million or $0.23 per share from $17.2illion or $0.29 per share a year ago. Street analysts expected earnings of $0.23 per share for the quarter. Analysts’ estimates typically exclude special items. Parexel’s total revenues, including service and reimbursement revenues, grew to $387.8 million from $364.1 million last year.
Gross margin, gross profit as a percent of service revenues, declined to 31.5 percent from 34.5 percent last year. Operating margin, operating profit as a percent of service revenues, dropped to 6.8 percent for the quarter from 9.3 percent last year.
Looking forward to the third quarter, Parexel currently expects earnings in a range of $0.28 to $0.30 per share, adjusted earnings of $0.30 to $0.32 per share, and consolidated service revenues of $350 to $358 million. Analysts currently estimate earnings of $0.30 per share on revenues of $347.05 million for the third quarter.