Parexel's 1QFY11 Helps Re-Set Outlook

Goldman Sachs has published a research report on Parexel International Corporation PRXL after the company reported solid new business win in its 1QFY11. In the report, Goldman Sachs writes "In addition to slower conversion, PRXL also revised its outlook to reflect changes in FX, client-driven trial delays, new business wins and cancellations from 1QFY11, and a lower tax rate. Specifically, PRXL's outlook includes: (1) FY11 revenue guidance of $1.250-$1.270 bn (from $1.265-$1.310 bn) where we now forecast $1.255 bn. (2) EPS of $1.23-$1.31 (from $1.22-$1.32) which compares to our new estimate of $1.26. (3) 2QFY11 in the range of $0.27-$0.29 on revenue of $300-$305 mn with our revised estimates at $303.5 and $0.27. (4) 30% tax rate for FY2Q-4Q." Goldman Sachs maintains its Buy rating and $28 price target. Parexel International Corporation closed yesterday at $21.20.