Morningstar | PRA Health Sciences' 3Q Performance Showed Continued Strength While Management Raises 2018 Guidance
PRA Health's third-quarter results were slightly ahead of our expectations, and we anticipate a minor increase in our fair value estimate after we update our assumptions. We are reiterating our narrow-moat rating. The company's upgraded adjusted EPS guidance range of $4.22-$4.27 for 2018 is higher than our prior forecast, while the reaffirmed revenue guidance range of $2.87 billion-$2.92 billion still encompasses our previous revenue forecast of approximately $2.9 billion.The company's new business award growth continues to be consistent with its historical trend. As a result, we continue to expect most of the company's growth will be derived from large pharma clients. During the quarter, 54% of the company's revenue stemmed from the pharmaceutical sector with the remainder split between remaining client categories. The company realized 8% organic revenue growth compared to the year-ago period and earned a net book/bill ratio of 1.28 times, excluding the revenue impact of adopting ASC 606, reimbursement revenue, and revenue from the data solutions segment.
PRA Health Sciences is a contract research organization engaged in providing outsourced clinical development and data solution services to the biotechnology and pharmaceutical industries. The company has two reportable segments: Clinical Research, which performs a range of services across the spectrum of clinical development programs, from the filing of investigational new drug applications and similar regulatory applications to conducting all phases of clinical trials; and Data Solutions, which provides data, analytics, technology, and consulting solutions to the life sciences market including market intelligence services, consulting and services, and apps and technology.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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