Fubotv earnings beat by $0.10, revenue topped estimates
Tuesday, ICON plc (NASDAQ:ICLR), a profitable healthcare services company with a market capitalization of $17 billion, received a reiterated Overweight rating and a $280.00 price target from JPMorgan, following the company's issuance of its 2025 guidance.
According to the guidance, ICON anticipates revenue between $8.050 billion and $8.650 billion, compared to the Street's expectation of $8.496 billion. The company also forecasts adjusted earnings per share (EPS) in the range of $13.00 to $15.00, against a Street consensus of $14.83. InvestingPro analysis suggests ICON is currently undervalued, with a P/E ratio of 24x that appears attractive relative to its growth potential.
The growth at the midpoint of the guidance suggests a 1% year-over-year increase, aligning with the company's previous indications of low to mid-single-digit year-over-year organic growth mentioned during the third quarter. ICON highlighted that its outlook for 2025 includes challenges from its top two customers and an uneven recovery in the biotech sector.
However, these are expected to be partly mitigated by gains from strategic partnerships. According to InvestingPro, ICON maintains a strong financial health score of 3.48 (rated as GREAT), with robust profitability metrics and a healthy current ratio of 1.34.
ICON also confirmed its 2024 outlook, projecting revenues to be between $8.260 billion and $8.300 billion, which is in line with the Street's forecast of $8.276 billion. The adjusted EPS for 2024 is anticipated to be between $13.90 and $14.10, closely matching the Street's estimate of $13.98. The company's press release noted that the trailing twelve-month book-to-bill ratio for the fourth quarter stood at 1.2.
In the fourth quarter, ICON repurchased $400 million worth of its stock, totaling $500 million for the year 2024. The company still has $250 million authorized for future repurchases. The firm is scheduled to present at a JPMorgan conference today at 3:45 PM PT, where investor attention will likely focus on the details of the 2025 guidance, including demand projections in large pharma and biotech sectors, end-of-year booking trends, and expected margin progression into 2025.
For deeper insights into ICON's financial health and growth prospects, investors can access the comprehensive Pro Research Report available exclusively on InvestingPro, which includes detailed analysis of the company's competitive position and growth drivers.
In other recent news, ICON plc has issued its financial guidance for 2025, projecting a modest revenue growth and steady earnings per share (EPS). The company's revenue is anticipated to be between $8.05 billion and $8.65 billion, with EPS expected to range from $13.00 to $15.00.
TD Cowen reaffirmed its Buy rating and $285.00 price target on ICON, while Jefferies lowered ICON's price target to $275 but maintained its Buy rating, and RBC Capital Markets retained its Outperform rating on ICON stock with a price target of $263.00. ICON also announced the appointment of Barry Balfe as its new Chief Operating Officer. These are recent developments surrounding ICON plc.
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