The 10-second takeaway
For the quarter ended Dec. 31 (Q4), ICON missed estimates on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share dropped significantly.
Margins dropped across the board.
ICON recorded revenue of $242.6 million. The 11 analysts polled by S&P Capital IQ looked for a top line of $250.2 million on the same basis. GAAP reported sales were 4.5% higher than the prior-year quarter's $232.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.07. The 14 earnings estimates compiled by S&P Capital IQ averaged $0.08 per share. GAAP EPS of $0.07 for Q4 were 81% lower than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.8%, 500 basis points worse than the prior-year quarter. Operating margin was 2.7%, 680 basis points worse than the prior-year quarter. Net margin was 1.7%, 780 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $255.5 million. On the bottom line, the average EPS estimate is $0.15.
Next year's average estimate for revenue is $1.09 billion. The average EPS estimate is $1.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 360 members rating the stock outperform and eight members rating it underperform. Among 121 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give ICON a green thumbs-up.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ICON is hold, with an average price target of $20.44.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of ICON. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.