ICON (ICLR) has to be the one company I constantly throw roses at, that I have yet to put into the fund. I keep waiting for that "selloff" that never seems to happen when I have my eye on this specific name. I have not been posting to the blog the individual earning reports of the Contract Research Organizations but most individual names continue to impress - for example
Parexel International (PRXL) has put on 17% in 2 days post earnings.
- Shares of Parexel International Corp. jumped to an all-time high Thursday after the pharmaceutical services company reported a strong quarter, with results boosted by greater service revenue and a favorable tax adjustment.
- The Waltham, Mass., company said its profit more than doubled to $25 million, or 43 cents per share, from $10.4 million, or 18 cents per share a year earlier. Excluding a one-time tax benefit of $8.7 million, Parexel earned $16.3 million, or 28 cents per share. Revenue increased 31 percent, to $331.9 million from $254 million.
- On average, analysts had expected 26 cents per share in profit and revenue of $259.7 million, according to Thomson Financial. Those estimates usually exclude one-time gains and expenses.
- Parexel's service revenue increased 33 percent, to $272.2 million, and reimbursement revenue rose 23 percent to $59.8 million.
As I've said in the past this is a nice steady Eddie group (except of late when the hedge funds have moved wholesale into "healthcare") that does not have FDA exposure and I like - the valuations seem to be getting stretched however as more and more funds go there to "hide out" - we know how that ends. I own the one dog of the group (stock wise at least) as the much unloved
WuXi PharmaTech (WX) spins in oblivion. But as the story states - foreign share of outsourcing will only grow - that was my thesis - I guess I need to wait a few more years for it to play out.
Investors Business Daily has a very rose worthy article on ICON this week.
- Icon has the kind of customer demand that many businesses these days can only dream about.
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