PAREXEL International Corporation (PRXL) has reported a 62.84 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $17.80 million, or $0.35 a share in the quarter, compared with $47.90 million, or $0.89 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $37.90 million, or $0.74 a share compared with $47.90 million or $0.89 a share, a year ago.

Revenue during the quarter went down marginally by 1.01 percent to $605.20 million from $611.40 million in the previous year period. Gross margin for the quarter contracted 127 basis points over the previous year period to 29.69 percent. Total expenses were 95.06 percent of quarterly revenues, up from 88.60 percent for the same period last year. That has resulted in a contraction of 646 basis points in operating margin to 4.94 percent.

Operating income for the quarter was $29.90 million, compared with $69.70 million in the previous year period.

However, the adjusted operating income for the quarter stood at $59.40 million compared to $70 million in the prior year period. At the same time, adjusted operating margin contracted 163 basis points in the quarter to 9.81 percent from 11.45 percent in the last year period.

"PAREXEL's financial results for the third quarter of Fiscal Year 2017 were in line with our expectations," said Josef von Rickenbach, chairman and chief executive officer of PAREXEL International. "We are encouraged by our outlook for revenue and overall operational performance in the fourth quarter." "We continue to be committed to margin improvement. In response to revenue shortfalls earlier in this fiscal year, we are right-sizing the organization. In January, we announced a restructuring program, and we are now expanding that program. All in, we expect total annual savings of $75-$85 million from our restructuring activities in Fiscal Year 2018. We remain committed to our longer-term goal of 14-16% adjusted operating margin. "The biopharmaceutical services market remains solid, and we continue to identify good opportunities across PAREXEL’s broad range of services," Mr. von Rickenbach concluded. "We expect that our rising customer satisfaction positions us well to take advantage of these opportunities and to drive improved revenue performance in Fiscal Year 2018 and beyond."

For the fourth-quarter 2017, PAREXEL International Corporation forecasts revenue to be in the range of $531 million to $545 million. The company expects diluted earnings per share to be in the range of $0.57 to $0.71. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.87 to $1.01.

For fiscal year 2017, PAREXEL International Corporation forecasts revenue to be in the range of $2,090 million to $2,110 million. The company expects diluted earnings per share to be in the range of $2.04 to $2.18. The company expects diluted earnings per share to be in the range of $3.17 to $3.31 on adjusted basis.