The 10-second takeaway
For the quarter ended Sep. 30 (Q3), ICON Public beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Margins increased across the board.
ICON Public logged revenue of $285.5 million. The 12 analysts polled by S&P Capital IQ predicted revenue of $282.6 million on the same basis. GAAP reported sales were 19% higher than the prior-year quarter's $240.8 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 $0.29. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.27 per share. GAAP EPS were $0.29 for Q3 versus -$0.04 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.8%, 160 basis points better than the prior-year quarter. Operating margin was 7.3%, 680 basis points better than the prior-year quarter. Net margin was 6.2%, 730 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $290.7 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $1.10 billion. The average EPS estimate is $0.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 345 members out of 354 rating the stock outperform, and nine members rating it underperform. Among 96 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give ICON Public a green thumbs-up, and three 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 $25.76.
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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.