The 10-second takeaway
For the quarter ended June 30 (Q2), ICON Public beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share shrank significantly.
Margins shrank across the board.
ICON Public notched revenue of $277.0 million. The 10 analysts polled by S&P Capital IQ predicted sales of $266.6 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $233.0 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 $0.21. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.22 per share. GAAP EPS of $0.13 for Q2 were 38% lower than the prior-year quarter's $0.21 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 35.0%, 30 basis points worse than the prior-year quarter. Operating margin was 6.0%, 70 basis points worse than the prior-year quarter. Net margin was 2.9%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $282.5 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $1.09 billion. The average EPS estimate is $0.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 352 members out of 361 rating the stock outperform, and nine members rating it underperform. Among 93 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 91 give ICON Public 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 Public is outperform, with an average price target of $24.80.
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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 plc (ADR). 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.
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