ICON Plc

ICON Plc's (ICLR - Snapshot Report) share price has been steadily climbing higher for most of 2008, producing excellent returns in a very challenging environment. The company's second-quarter results were ahead of analyst estimates for the fourth time in the last four quarters, providing additional fundamental strength to drive shares higher.

ICON Plc offers clinical research services to pharmaceutical and biotechnology companies in the United States and Europe. The company was founded in 1990, has a market cap of $2.44 billion and is headquartered in Dublin, Ireland.

Second-Quarter Results

Shares of ICLR have extended their gains after the company reported excellent second-quarter results on July 22.

Revenue was up 49% from last year to $218 million. Net income totaled $18.8 million, up from $13.3 million in the same period last year. This produced earnings of 62 cents per share, ahead of analyst estimates by three cents.

A History of Surprising

This company has established a pattern of surprising and beating analyst estimates, having done so over the last four quarters by an average of 3 cents, or 5.25%.

Guidance Raised

After the solid performance ICON raised its 2008 earnings and revenue forecast. The company now expects earnings to fall between $2.46 and $2.52 per share, and revenue between $870 and $890 million. Analysts are projecting 27% earnings growth in 2009, with the next-year estimate pegged at $3.20 per share.

Valuations

With shares trading above $80, this is not a cheap stock. Based upon the current-year estimate its forward P/E multiple is 32X, a big premium to the overall market. It is an indication that investors are expecting strong earnings from the company and pricing anticipated future growth into its share price.

The Chart

ICLR shares have had an awesome year, delivering steady gains as its stock price has climbed from less than $60 to the recent high above $83. This also happens to be a new 52-week and all-time high. This high is once again under pressure, take a look at the chart below.