I am amazed to check this board today and to see no comment on this company which sold off on huge volume.
I think this is a buying opportunity.
The company has a strong niche:
PAREXEL International Corporation is a leading contract research organization providing a broad range of knowledge-based
product development and product launch services to the worldwide pharmaceutical, biotechnology and medical device
industries. The Company's primary objective is to help clients quickly obtain the necessary regulatory approvals of their
products and, ultimately, optimize the market penetration of those products. Over the past fifteen years, PAREXEL has
developed significant expertise in disciplines supporting this strategy.
Today's press release makes clear that this present period is a short term bump in a more impressive long term road:
"We are very pleased with our record new business wins of $113 million in the September quarter following a very strong $110 million in the June quarter, in each case representing a substantial increase over prior-year levels," said Josef von Rickenbach, Chairman and Chief Executive Officer of PAREXEL. "Despite this significant upturn in new business, the September quarter results, nevertheless, fall slightly below analysts' consensus expectations, largely reflecting the level of new business authorizations during prior quarters as well as extended start-up times for recently awarded large clinical programs."
Based on current backlog levels, recent new business authorizations, and general market conditions for the Company's services, the Company projects annual net revenue and earnings per share growth of 25%-30% for fiscal year 1999, with second-quarter year-over-year growth in the 20%-25% range.
"Given the healthy demand for pharmaceutical outsourcing services and our successful selling efforts over the last two quarters, we believe the September quarter and projected fiscal 1999 results represent a temporary moderation of growth and look for a higher growth rate in the future," stated von Rickenbach. "Operational execution and effective cost management will remain top priorities of management and all personnel at the Company."
Today's response certainly looks like an overreaction based on the fact that earnings were only .02 below expectations and the company is projecting growth of 25-30% next year. |
