We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ICLR Misses on Q3 Earnings, Lowers 2024 Guidance, Stock Falls
Read MoreHide Full Article
ICON plc (ICLR - Free Report) delivered third-quarter 2024 adjusted earnings per share of $3.35, up 1.5% from the year-ago period’s figure. However, the metric missed the Zacks Consensus Estimate by 12.99%.
The company reported GAAP EPS of $2.36, up 19.8% from the year-earlier level.
Following the earnings announcement, ICLR stock fell 21% last Thursday.
ICLR’s Q3 Revenues
Total revenues decreased 1.2% year over year to $2.03 billion. The figure was down 1% on a constant currency (CER) basis. The metric missed the Zacks Consensus Estimate by 1.2%.
Gross business wins in the third quarter amounted to $2.83 billion and cancellations totaled $504 million. This resulted in net business wins of $2.33 billion and a book-to-bill of 1.15.
ICLR’s Q3 Margins
The gross profit decreased 2.4% year over year to $594.1 billion. The gross margin contracted 35-basis points (bps) to 29.1%.
Selling, general and administrative expenses rose 10.8% to $205.1 million.
The adjusted operating income was $386.3 million, suggesting a decrease of 8.2% year over year. The adjusted operating margin contracted 144 bps to 19%.
Cash Position
ICON exited the third quarter with cash and cash equivalents of $695.5 million compared with $506.6 million at the end of the second quarter. It had a net debt balance of $2.7 billion at the end of the reported quarter.
Cumulative cash flow provided by operating activities was $948.3 million compared with $720.9 million in the prior-year period.
Guidance
The company lowered its full-year 2024 financial guidance.
It now expects revenues to be in the range of $8.26 - $8.30 billion (down from the previous guidance of $8.45-$8.55 billion), representing growth of approximately 1.7-2.2% year over year. The Zacks Consensus Estimate for the same is pegged at $8.51 billion.
Adjusted earnings per share are anticipated to be in the range of $13.90 - $14.10 (down from the previous guidance of $15.00-$15.20), implying 8.7-10.2% year-over-year growth. The Zacks Consensus Estimate for the metric is pegged at $15.07.
ICON exited the third quarter with lower-than-expected results, wherein both earnings and revenues missed estimates. During the reported quarter, the company experienced slower-than-expected activity in its Biotech segment. It also faced lower-than-anticipated revenue contributions from two of its largest customers that are undergoing development model transitions. Moreover, several project delays and cancellations within the fast-burn vaccine area affected revenues. Additionally, the contraction of both margins is discouraging. The lowered 2024 guidance poses a concern for investors.
However, the company remains encouraged with opportunities like strategic partnerships as well as increased flow from biotech.
Phibro Animal Health reported fourth-quarter fiscal 2024 adjusted earnings of 41 cents per share, which topped the Zacks Consensus Estimate by 20.6%. Revenues of $273.2 million beat the Zacks Consensus Estimate by 4.1%. PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
PAHC’s fiscal 2025 earnings are expected to surge 31.9% compared with the industry’s 11.6% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 4.1%.
Veracyte, sporting a Zacks Rank #1 at present, posted second-quarter 2024 earnings of 30 cents per share, which beat the Zacks Consensus Estimate of a loss of 3 cents. Revenues of $114.4 million surpassed the Zacks Consensus Estimate by 14%.
VCYT has an estimated earnings growth rate of 115.7% for 2024 compared with the industry’s 13.7%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 328.4%.
HealthEquity, carrying a Zacks Rank #1 at present, reported a second-quarter fiscal 2025 adjusted earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate by 22.9%. Revenues of $299.9 million topped the Zacks Consensus Estimate by 5.4%.
HQY has an estimated long-term earnings growth rate of 28.2% compared with the industry’s 13.4%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.8%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ICLR Misses on Q3 Earnings, Lowers 2024 Guidance, Stock Falls
ICON plc (ICLR - Free Report) delivered third-quarter 2024 adjusted earnings per share of $3.35, up 1.5% from the year-ago period’s figure. However, the metric missed the Zacks Consensus Estimate by 12.99%.
The company reported GAAP EPS of $2.36, up 19.8% from the year-earlier level.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Following the earnings announcement, ICLR stock fell 21% last Thursday.
ICLR’s Q3 Revenues
Total revenues decreased 1.2% year over year to $2.03 billion. The figure was down 1% on a constant currency (CER) basis. The metric missed the Zacks Consensus Estimate by 1.2%.
Gross business wins in the third quarter amounted to $2.83 billion and cancellations totaled $504 million. This resulted in net business wins of $2.33 billion and a book-to-bill of 1.15.
ICLR’s Q3 Margins
The gross profit decreased 2.4% year over year to $594.1 billion. The gross margin contracted 35-basis points (bps) to 29.1%.
Selling, general and administrative expenses rose 10.8% to $205.1 million.
The adjusted operating income was $386.3 million, suggesting a decrease of 8.2% year over year. The adjusted operating margin contracted 144 bps to 19%.
Cash Position
ICON exited the third quarter with cash and cash equivalents of $695.5 million compared with $506.6 million at the end of the second quarter. It had a net debt balance of $2.7 billion at the end of the reported quarter.
Cumulative cash flow provided by operating activities was $948.3 million compared with $720.9 million in the prior-year period.
Guidance
The company lowered its full-year 2024 financial guidance.
It now expects revenues to be in the range of $8.26 - $8.30 billion (down from the previous guidance of $8.45-$8.55 billion), representing growth of approximately 1.7-2.2% year over year. The Zacks Consensus Estimate for the same is pegged at $8.51 billion.
Adjusted earnings per share are anticipated to be in the range of $13.90 - $14.10 (down from the previous guidance of $15.00-$15.20), implying 8.7-10.2% year-over-year growth. The Zacks Consensus Estimate for the metric is pegged at $15.07.
ICON PLC Price, Consensus and EPS Surprise
ICON PLC price-consensus-eps-surprise-chart | ICON PLC Quote
Our Take
ICON exited the third quarter with lower-than-expected results, wherein both earnings and revenues missed estimates. During the reported quarter, the company experienced slower-than-expected activity in its Biotech segment. It also faced lower-than-anticipated revenue contributions from two of its largest customers that are undergoing development model transitions. Moreover, several project delays and cancellations within the fast-burn vaccine area affected revenues. Additionally, the contraction of both margins is discouraging. The lowered 2024 guidance poses a concern for investors.
However, the company remains encouraged with opportunities like strategic partnerships as well as increased flow from biotech.
ICLR’s Zacks Rank and Key Picks
ICON currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Phibro Animal Health (PAHC - Free Report) , Veracyte (VCYT - Free Report) and HealthEquity (HQY - Free Report) .
Phibro Animal Health reported fourth-quarter fiscal 2024 adjusted earnings of 41 cents per share, which topped the Zacks Consensus Estimate by 20.6%. Revenues of $273.2 million beat the Zacks Consensus Estimate by 4.1%. PAHC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
PAHC’s fiscal 2025 earnings are expected to surge 31.9% compared with the industry’s 11.6% growth. The company’s earnings surpassed estimates in three of the trailing four quarters and missed in one, the average surprise being 4.1%.
Veracyte, sporting a Zacks Rank #1 at present, posted second-quarter 2024 earnings of 30 cents per share, which beat the Zacks Consensus Estimate of a loss of 3 cents. Revenues of $114.4 million surpassed the Zacks Consensus Estimate by 14%.
VCYT has an estimated earnings growth rate of 115.7% for 2024 compared with the industry’s 13.7%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 328.4%.
HealthEquity, carrying a Zacks Rank #1 at present, reported a second-quarter fiscal 2025 adjusted earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate by 22.9%. Revenues of $299.9 million topped the Zacks Consensus Estimate by 5.4%.
HQY has an estimated long-term earnings growth rate of 28.2% compared with the industry’s 13.4%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.8%.