PAREXEL International Cuts FY15 Revenue Outlook; Narrows Adjusted EPS Outlook

(RTTNews) - PAREXEL International Corp. (PRXL) on Tuesday updated its guidance for the fourth quarter and the full fiscal year 2015 in conjunction with its Investor Day being held tomorrow.

For the fourth quarter, the company now expects revenue of $517 million to $533 million, earnings of $0.50 to $0.58 per share and adjusted earnings of $0.70 to $0.78 per share. Previously, the company expected revenue of $520 million to $540 million and earnings of $0.65 to $0.81 per share.

Analysts polled by Thomson Reuters currently expect the company to earn $0.75 per share on revenue of $531.88 million for the fourth quarter. Analysts' estimates typically exclude special items.

For the fiscal year 2015, the company now expects revenue of $2.010 billion to $2.026 billion, earnings of $2.54 to $2.62 per share ad adjusted earnings of $2.70 to $2.78 per share. previously, the company expected revenue of $2.012 billion to $2.032 billion, earnings of $2.68 to $2.86 per share and adjusted earnings of $2.65 to $2.83 per share.

Analysts currently expect the company to earn $2.75 per share on revenue of $2.04 billion for the fiscal year 2015.

The company also initiated its fiscal 2016 guidance, which calls for revenue of $2.160 billion to $2.210 billion, earnings of $2.97 to $3.33 per share and adjusted earnings of $3.02 to $3.38 per share. Analysts currently expect the company to earn $3.24 per share on revenue of $2.20 billion for the fiscal year 2016.

The company also said it plans to record pre-tax charges in the range of $35 to $45 million in conjunction with restructuring activities it is undertaking. The restructuring activities are company-wide, and are designed to improve the productivity and efficiency of the Company, to simplify the organization, and to streamline decision-making, thereby enhancing client engagement.

PAREXEL expects to record a pre-tax charge in the fourth quarter in the range of $20 to $30 million, with the remainder of the charge to be incurred over the course of fiscal year 2016. The company anticipates completing restructuring activities by June 30, 2016.