Following the latest quarterly performance data, Baird analyst Eric Coldwell has revised the price target for Icon (ICLR, Financial), reducing it from $192 to $160. Despite this adjustment, the analyst maintains a Neutral stance on the company's stock. The recalibration of the firm's model was influenced by the outcomes observed in the first quarter.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for Icon PLC (ICLR, Financial) is $197.31 with a high estimate of $250.00 and a low estimate of $155.00. The average target implies an upside of 35.88% from the current price of $145.21. More detailed estimate data can be found on the Icon PLC (ICLR) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Icon PLC's (ICLR, Financial) average brokerage recommendation is currently 2.2, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Icon PLC (ICLR, Financial) in one year is $267.12, suggesting a upside of 83.95% from the current price of $145.21. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Icon PLC (ICLR) Summary page.
ICLR Key Business Developments
Release Date: May 01, 2025
- Revenue: $2 billion, a year-on-year decrease of 4.3% or 3.2% on a constant currency basis.
- Adjusted Gross Margin: 28.2%, compared to 29.9% in Q1 2024.
- Adjusted SG&A Expense: $173.4 million, or 8.7% of revenue.
- Adjusted EBITDA: $390.7 million, or 19.5% of revenue.
- Adjusted Operating Income: $353.6 million, a margin of 17.7%.
- Adjusted Net Income: $258.3 million, a margin of 12.9%.
- Adjusted Earnings Per Share: $3.19, a decrease of 8.1% year over year.
- US GAAP Net Income: $154.2 million, or $1.90 per diluted share, a decrease of 15.6% from the prior year period.
- Cash from Operating Activities: $268.2 million.
- Free Cash Flow: $239.3 million.
- Net Debt: $2.9 billion, with a leverage ratio of 1.7 times net debt to adjusted EBITDA.
- Share Repurchases: $250 million at an average price of $184 per share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Icon PLC (ICLR, Financial) reported better-than-expected adjusted EBITDA margin performance of 19.5% for Q1 2025, demonstrating effective cost control and resource alignment.
- The company has seen a significant increase in overall opportunities in the Biotech segment, with a modest uptick in win rates for projects that reached decision.
- Icon PLC (ICLR) continues to generate momentum from recent strategic partnerships, particularly in the mid-sized Pharma segment.
- The company has launched two new AI-enabled tools, iSubmit and SmartDraft, to enhance operational efficiencies and accelerate clinical trials.
- Icon PLC (ICLR) executed $250 million in share repurchases during Q1 2025, reflecting a commitment to returning capital to shareholders.
Negative Points
- Icon PLC (ICLR) experienced elevated levels of cancellations in Q1 2025, similar to Q4 2024, impacting overall performance in bookings.
- The company reported a year-on-year revenue decrease of 4.3% in Q1 2025, with a constant currency decline of 3.2%.
- Adjusted gross margin for Q1 2025 was 28.2%, down from 29.9% in the same period last year.
- The book-to-bill ratio decreased to 1.01 times in Q1 2025, reflecting challenges in converting opportunities into contracts.
- Icon PLC (ICLR) updated its full-year guidance to account for increased cancellations and the removal of next-generation COVID trials, impacting expected revenue.
