The 10-second takeaway
For the quarter ended March 31 (Q1), ICON missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded.
Gross margins contracted, operating margins contracted, and net margins were steady.
ICON notched revenue of $252.3 million. The 10 analysts polled by S&P Capital IQ expected revenue of $256.7 million on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $229.3 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 $0.15. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.15 per share. GAAP EPS of $0.15 for Q1 were 7.1% higher than the prior-year quarter's $0.14 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 35.7%, 130 basis points worse than the prior-year quarter. Operating margin was 4.6%, 240 basis points worse than the prior-year quarter. Net margin was 3.6%, about the same as the prior-year quarter.
Next quarter's average estimate for revenue is $268.1 million. On the bottom line, the average EPS estimate is $0.21.
Next year's average estimate for revenue is $1.10 billion. The average EPS estimate is $1.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 354 members out of 364 rating the stock outperform, and 10 members rating it underperform. Among 107 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give ICON a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ICON is hold, with an average price target of $22.28.
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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.