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Icon PLC (ICLR) Up 2.3% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Icon PLC (ICLR - Free Report) . Shares have added about 2.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Icon PLC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
ICON delivered second-quarter 2024 adjusted earnings per share of $3.75, up 20.6% from the year-ago period’s figure. The figure also outpaced the Zacks Consensus Estimate by 1.7%.
Revenues
Total revenues rose 4.9% year over year to $2.12 billion, up 5.3% at constant exchange rate or CER. The figure missed the Zacks Consensus Estimate by a marginal 0.6%.
Gross business wins in the second quarter amounted to $3.07 billion and cancellations totaled $493 million. This resulted in net business wins of $2.58 billion and a book-to-bill of 1.22.
Margins
The gross profit increased 6.1% year over year to $6.27 billion. The gross margin expanded 31-basis points (bps) to 29.6%.
During the quarter, selling, general and administrative expenses rose 3.5% to $194.5 million.
The adjusted operating income was $4.32 billion, suggesting an increase of 7.2% year over year. The adjusted operating margin expanded 44 bps to 20.4%.
Cash Position
ICON exited the second quarter with cash and cash equivalents of $506.6 million compared with $396.1 million at the end of the first quarter. It had a net debt balance of $2.9 billion at the end of the reported quarter.
Cumulative cash flow provided by operating activities was $545.7 million compared with $379.4 million in the prior-year period.
Guidance
The company updated its full-year 2024 guidance. It now expects revenues to be in the range of $8.45-$8.55 billion (previously $8.48-$8.72 billion), representing growth of approximately 5% year over year at the midpoint of the range. The Zacks Consensus Estimate for the same is pegged at $8.62 billion.
Adjusted earnings per share are anticipated to be in the range of $15.00-$15.20 (up from the previous guidance of $14.65-$15.15), implying 17.3-18.8% year-over-year growth. The Zacks Consensus Estimate for the metric is pegged at $15.09.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Icon PLC has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Icon PLC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Icon PLC belongs to the Zacks Medical Services industry. Another stock from the same industry, Elevance Health (ELV - Free Report) , has gained 5.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Elevance Health reported revenues of $43.22 billion in the last reported quarter, representing a year-over-year change of -0.4%. EPS of $10.12 for the same period compares with $9.04 a year ago.
Elevance Health is expected to post earnings of $9.71 per share for the current quarter, representing a year-over-year change of +8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Elevance Health. Also, the stock has a VGM Score of C.
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Icon PLC (ICLR) Up 2.3% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Icon PLC (ICLR - Free Report) . Shares have added about 2.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Icon PLC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
ICON Q2 Earnings Surpass Estimates, Margins Expand
ICON delivered second-quarter 2024 adjusted earnings per share of $3.75, up 20.6% from the year-ago period’s figure. The figure also outpaced the Zacks Consensus Estimate by 1.7%.
Revenues
Total revenues rose 4.9% year over year to $2.12 billion, up 5.3% at constant exchange rate or CER. The figure missed the Zacks Consensus Estimate by a marginal 0.6%.
Gross business wins in the second quarter amounted to $3.07 billion and cancellations totaled $493 million. This resulted in net business wins of $2.58 billion and a book-to-bill of 1.22.
Margins
The gross profit increased 6.1% year over year to $6.27 billion. The gross margin expanded 31-basis points (bps) to 29.6%.
During the quarter, selling, general and administrative expenses rose 3.5% to $194.5 million.
The adjusted operating income was $4.32 billion, suggesting an increase of 7.2% year over year. The adjusted operating margin expanded 44 bps to 20.4%.
Cash Position
ICON exited the second quarter with cash and cash equivalents of $506.6 million compared with $396.1 million at the end of the first quarter. It had a net debt balance of $2.9 billion at the end of the reported quarter.
Cumulative cash flow provided by operating activities was $545.7 million compared with $379.4 million in the prior-year period.
Guidance
The company updated its full-year 2024 guidance. It now expects revenues to be in the range of $8.45-$8.55 billion (previously $8.48-$8.72 billion), representing growth of approximately 5% year over year at the midpoint of the range. The Zacks Consensus Estimate for the same is pegged at $8.62 billion.
Adjusted earnings per share are anticipated to be in the range of $15.00-$15.20 (up from the previous guidance of $14.65-$15.15), implying 17.3-18.8% year-over-year growth. The Zacks Consensus Estimate for the metric is pegged at $15.09.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Icon PLC has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Icon PLC has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Icon PLC belongs to the Zacks Medical Services industry. Another stock from the same industry, Elevance Health (ELV - Free Report) , has gained 5.7% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Elevance Health reported revenues of $43.22 billion in the last reported quarter, representing a year-over-year change of -0.4%. EPS of $10.12 for the same period compares with $9.04 a year ago.
Elevance Health is expected to post earnings of $9.71 per share for the current quarter, representing a year-over-year change of +8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.1%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Elevance Health. Also, the stock has a VGM Score of C.