DUBLIN - ICON plc (NASDAQ:ICLR), a healthcare intelligence and clinical research organization, reported third quarter earnings that fell short of analyst expectations, sending shares more than 15% lower in after-hours trading.
The company posted adjusted earnings per share of $3.35 for the quarter, missing the consensus estimate of $3.85 by $0.50. Revenue came in at $2.03 billion, below analyst projections of $2.13 billion and down 1.2% YoY.
ICON also lowered its full-year 2024 guidance, now expecting revenue between $8.26-$8.3 billion, down from its previous forecast and below the $8.51 billion consensus. The company cut its adjusted EPS outlook to $13.90-$14.10, compared to analyst estimates of $15.06.
CEO Dr. Steve Cutler attributed the disappointing results to "specific customer and division-level impacts," citing budget cuts from two large customers, lower vaccine-related activity, and caution from biotech clients leading to award and study delays.
"We expect these impacts to continue into quarter four, and as a result, we are taking decisive action to realign our resources to forecasted activity," Cutler stated.
Despite the challenges, ICON reported net business wins of $2.33 billion for the quarter, representing a book-to-bill ratio of 1.15. The company's backlog grew 9.4% YoY to $24.3 billion.
Cash generated from operating activities rose 17.9% YoY to $402.7 million. ICON repurchased $100 million worth of stock during the quarter at an average price of $297 per share.
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