Morningstar | Syneos' 3Q Performance Continues to Track our Expectations
Syneos' performance continues to track our expectations. We do not anticipate any major changes to our $53 fair value estimate after we incorporate management's narrowed guidance range, and we are leaving our narrow-moat rating intact. The company slightly reduced its adjusted revenue guidance range to $4.375 billion-$4.435 billion, coming below our approximate $4.5 million forecast. Additionally, Syneos slightly narrowed its adjusted diluted EPS guidance range to $2.66-$2.80 per share (from $2.55-$2.83), which still encompasses our $2.77 forecast. While we are encouraged by Syneos' $36.7 million debt repayment during the quarter, we remain cautious of the company's relatively high remaining debt balance.The company's performance during the quarter was supported by broad segment momentum. Syneos' commercial solutions segment revenue experienced 5% growth compared with the year-ago period. The segment's performance led to a book/bill ratio of 1.08 in the quarter, which management attributed to a strengthening macro environment. We expect Syneos to persist with its pace of new hiring for the segment, which continues to be an area of investment for the company. Meanwhile, widespread strength across all customer segments boosted Syneos' clinical solutions segment, which realized net awards of approximately $676 million and a net book/bill ratio of 1.24 for the quarter.
Syneos Health is a holding company. Through its subsidiaries, the company is a biopharmaceutical solutions organization providing a suite of clinical and commercial services to customers in the biopharmaceutical, biotechnology, and medical device industries. The company has two reportable segments: Clinical Solutions, which provides a variety of clinical development services spanning Phase I to Phase IV, including global studies, unbundled service offerings, and Real World Evidence studies; and Commercial Solutions, which provides customers with a range of commercialization services, including field teams and medication adherence services, communications solutions, and consulting services.
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.
We have operations in 27 countries.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.