ICON Increases Sales but Misses Revenue Estimate

ICON (Nasdaq: ICLR  ) reported earnings on Feb. 16. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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