Icon PLC (ICLR) has reported quarterly earnings of $3.46 per share, surpassing the Zacks Consensus Estimate of $3.44 per share and demonstrating growth from $3.13 per share a year earlier. These numbers exclude non-recurring items.
This performance reflects an earnings surprise of 0.58%, after the company delivered a 0.61% surprise in the previous quarter against an expected $3.28 per share.
Revenue and Market Performance
The company’s revenues for the quarter ending December 2023 totaled $2.07 billion, slightly below the Zacks Consensus Estimate by 0.87%. This compares with year-ago revenues of $1.96 billion. Over the last four quarters, Icon PLC has exceeded consensus revenue estimates once.
As of the beginning of this year, Icon PLC’s shares have risen approximately 0.1%, in contrast to the S&P 500’s 4.3% increase.
Prospects for Icon PLC
Given the company’s current underperformance, investors are now contemplating the future trajectory of Icon PLC’s stock. A key factor in this assessment is the company’s earnings outlook, including current consensus earnings expectations for upcoming quarters and their recent changes.
Historically, stock movements have shown a strong correlation with trends in earnings estimate revisions. As of now, Icon PLC’s estimate revisions trend is unfavorable, leading to a Zacks Rank #4 (Sell) for the stock. This suggests an expectation of underperformance compared to the market in the near future.
Market analysts are closely monitoring how estimates for the upcoming quarters and current fiscal year evolve in the following days. The current consensus EPS estimate stands at $3.44 for the next quarter, with expected revenues of $2.09 billion. For the current fiscal year, the consensus EPS estimate is $14.85 with revenues projected at $8.63 billion.
Furthermore, industry outlook plays a vital role in influencing stock performance. Currently, the Medical Services industry, to which Icon PLC belongs, ranks in the top 39% of Zacks industries, with research indicating that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1.
Industry Peers
Co-Diagnostics, Inc. (CODX), operating in the same industry, is yet to disclose its results for the quarter ended December 2023. Estimates suggest an anticipated quarterly loss of $0.20 per share, reflecting a year-over-year growth of +37.5%. Revenue expectations for this period stand at $3.63 million, marking a notable 159.3% increase from the previous year.
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