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Icon plc (ICLR)
NASDAQ:ICLR
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Icon
(NASDAQ:ICLR)
Rating:76Outperform
Price Target:
$198.00
▲(11.27% Upside)
Positive Factors
Earnings Performance
ICLR delivered OpEx management, as planned, to drive EPS outperformance and tightened the guidance with a higher revenue midpoint.
Market Position
ICLR is seen as a structural winner in the clinical CRO space, benefitting from both its market-leading position and the cyclical bottoming of the industry.
Share Repurchase
ICON leveraged its strong balance sheet to repurchase $250 million worth of stock, and the company plans to be active buying back shares in the near term.
Negative Factors
Booking Uncertainty
It is unclear whether bookings strength will continue into the second half.
Clinical Trials
ICLR has halted screening and dosing activities for new subjects, but approximately half of the planned 10,000 subjects have already been enrolled and dosed.
Market Volatility
ICLR's recent results have not been immune to market volatility, with the expectations for this Q fairly muted given potential revenue pressure and excess cancelations.
Icon (ICLR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.84B
Dividend YieldN/A
Average Volume (3M)1.39M
Price to Earnings (P/E)18.3
Beta (1Y)0.97
Revenue Growth-2.91%
EPS Growth12.92%
CountryUS
Employees41,250
SectorHealthcare
Sector Strength51
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)3.26
Shares Outstanding77,772,130
10 Day Avg. Volume802,587
30 Day Avg. Volume1,392,882
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue1.82
Enterprise Value/Gross Profit6.65
Enterprise Value/Ebitda10.73
Forecast
1Y Price Target
$213.85Price Target Upside20.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Icon Business Overview & Revenue Model
Company DescriptionICON plc (ICLR) is a global provider of outsourced development and commercialization services to the pharmaceutical, biotechnology, and medical device industries. With a focus on delivering high-quality solutions across various stages of the clinical development process, ICON offers services including clinical trial management, regulatory consulting, data management, and market access. The company operates in several sectors, such as clinical research, strategic development, and regulatory services, catering to a diverse clientele looking to streamline their research and development efforts.
How the Company Makes MoneyICON generates revenue primarily through service contracts with pharmaceutical and biotechnology companies for clinical trial management and related services. The company operates on a fee-for-service model, where it charges clients for various clinical development services based on the scope and complexity of the projects. Key revenue streams include clinical trial management, data management, and regulatory affairs services. Additionally, ICON has established significant partnerships with pharmaceutical firms and collaborates with academic institutions, which contribute to its earnings by providing access to a broader client base and enhancing its service offerings. The company's ability to secure long-term contracts and maintain repeat business from existing clients also plays a crucial role in stabilizing its revenue flow.
Icon Earnings Call Summary
Earnings Call Date:Jul 23, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong gross business awards, improved cost management, and operational advancements, with significant share repurchases indicating financial strength. However, elevated cancellations and decreased year-on-year revenue posed challenges. The sentiment is balanced with promising growth but also notable obstacles.Q2-2025 Updates
Positive Updates
Increased Gross Business Awards
Gross business awards increased 11% on a sequential basis over quarter 1, with notable wins from several biotech customers and large pharma partnerships.
Revenue Performance Exceeds Expectations
Revenue in quarter 2 was $2.017 billion, representing a year-on-year decrease of 4.8%, but up approximately 1% sequentially on quarter 1 2025, with higher pass-through revenue assisting performance.
Improvement in Gross Margin and Cost Management
Gross margin improved over quarter 1 to 28.3%, and SG&A costs reduced by $9 million year-over-year, demonstrating efficient global operations.
Positive Developments in Key Operational Areas
Customer and site satisfaction scores improved due to accelerated site activation, patient recruitment, and trial completion. Investments in obesity and related metabolic diseases are progressing well.
Significant Share Repurchases
In quarter 2, $250 million in shares were repurchased, and a new share repurchase authorization for up to $1 billion was approved.
Negative Updates
Elevated Cancellations Impact Book-to-Bill
Net book-to-bill result of 1.02x was negatively impacted by elevated cancellations, including the cancellation of a large next-generation COVID vaccine trial.
Decreased Revenue Year-on-Year
Revenue in quarter 2 was $2.017 billion, representing a year-on-year decrease of 4.8%.
Company Guidance
During ICON Plc's Q2 2025 earnings call, the company provided guidance reflecting an expected increase in full-year revenue, adjusting the range to $7.85 billion to $8.15 billion, with a midpoint of $8 billion. This adjustment comes despite an ongoing competitive environment and elevated cancellations, including a significant cancellation of a large next-generation COVID vaccine trial. The company anticipates maintaining its adjusted earnings per share guidance at $13.50, attributing the revenue increase primarily to higher pass-through revenues, which contributed to a 2.017 billion revenue in Q2, despite a year-on-year decrease of 4.8%. ICON highlighted a stable burn rate of 8.2% and an improved adjusted EBITDA margin of 19.6%. Additionally, ICON reported adjusted net income of $259.5 million, translating to adjusted earnings per share of $3.26, marking a sequential increase of 2.2%. The company continues to focus on several growth areas, including biotech partnerships and therapeutic areas like obesity, supported by its strategic cost management and operational efficiencies.Icon Financial Statement Overview
Summary
Icon demonstrates solid financial health with strong profitability and a stable balance sheet. While there are concerns about recent revenue and free cash flow growth, the company maintains efficient operations and a robust capital structure, positioning it well for future challenges.Income Statement
Icon's income statement shows a strong EBIT and EBITDA margin, indicating efficient operations. However, the recent TTM data reveals a slight decline in revenue growth rate, which could be a concern if it continues. The net profit margin remains healthy, suggesting profitability is maintained despite revenue fluctuations.75
Positive
Balance Sheet
The balance sheet reflects a solid financial position with a decreasing debt-to-equity ratio over recent years, indicating improved leverage management. Return on equity is stable, showing consistent returns to shareholders. The equity ratio is strong, highlighting a robust capital structure.80
Positive
Cash Flow
Cash flow analysis shows a decrease in free cash flow growth in the TTM period, which could impact future investments. However, the operating cash flow to net income ratio remains healthy, indicating good cash generation relative to earnings. The free cash flow to net income ratio is strong, suggesting efficient cash utilization.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.09B | 8.28B | 8.12B | 7.74B | 5.48B | 2.80B |
| Gross Profit | 2.21B | 2.44B | 2.40B | 2.21B | 1.51B | 808.03M |
| EBITDA | 1.37B | 1.56B | 1.52B | 1.41B | 739.43M | 488.83M |
| Net Income | 794.25M | 791.47M | 612.34M | 505.30M | 153.19M | 327.81M |
Balance Sheet | ||||||
| Total Assets | 16.60B | 16.88B | 16.99B | 17.19B | 17.39B | 3.44B |
| Cash, Cash Equivalents and Short-Term Investments | 390.40M | 538.78M | 380.06M | 290.48M | 753.92M | 842.03M |
| Total Debt | 3.55B | 3.60B | 3.94B | 4.83B | 5.65B | 433.61M |
| Total Liabilities | 7.05B | 7.35B | 7.75B | 8.69B | 9.32B | 1.59B |
| Stockholders Equity | 9.56B | 9.52B | 9.24B | 8.50B | 8.07B | 1.85B |
Cash Flow | ||||||
| Free Cash Flow | 1.00B | 1.12B | 1.02B | 421.15M | 735.39M | 543.67M |
| Operating Cash Flow | 1.17B | 1.29B | 1.16B | 563.32M | 829.14M | 594.72M |
| Investing Cash Flow | -271.63M | -266.79M | -226.65M | -145.87M | -6.02B | -46.58M |
| Financing Cash Flow | -1.03B | -837.18M | -844.04M | -864.17M | 5.11B | -235.02M |
Icon Technical Analysis
Positive
177.94
Price Trends
162.38
Positive
150.84
Positive
174.15
Positive
Market Momentum
3.70
Positive
59.24
Neutral
49.25
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ICLR, the sentiment is Positive. The current price of 177.94 is above the 20-day moving average (MA) of 170.96, above the 50-day MA of 162.38, and above the 200-day MA of 174.15, indicating a bullish trend. The MACD of 3.70 indicates Positive momentum. The RSI at 59.24 is Neutral, neither overbought nor oversold. The STOCH value of 49.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ICLR.
Icon Risk Analysis
Icon disclosed 57 risk factors in its most recent earnings report. Icon reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Icon Peers Comparison
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $13.36B | 35.36 | 89.38% | ― | 9.94% | 25.30% | |
79 Outperform | $32.44B | 27.64 | 19.80% | ― | 3.53% | -10.72% | |
76 Outperform | $13.84B | 18.29 | 8.30% | ― | -2.91% | 12.92% | |
70 Neutral | $20.31B | 21.72 | 13.65% | 1.71% | 12.58% | 13.00% | |
61 Neutral | $10.46B | 37.86 | 3.61% | 0.31% | 3.33% | 32.86% | |
56 Neutral | $8.04B | 449.94 | -1.96% | ― | -1.21% | -115.44% | |
51 Neutral | $7.84B | -0.18 | -41.53% | 2.28% | 22.72% | -1.87% |
* Healthcare Sector Average
Performance Comparison
ICLR
Icon
177.94
-134.28
-43.01%
CRL
Charles River Labs
163.31
-28.73
-14.96%
RVTY
Revvity
90.11
-29.31
-24.54%
DGX
Quest Diagnostics
181.64
27.66
17.96%
IQV
IQVIA Holdings
190.81
-58.00
-23.31%
MEDP
Medpace Holdings
475.51
125.61
35.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.