Yahoo Finance ICON Public Limited Company Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
It's been a good week for ICON Public Limited Company (NASDAQ:ICLR) shareholders, because the company has just released its latest quarterly results, and the shares gained 2.8% to US$300. The result was positive overall - although revenues of US$2.1b were in line with what the analysts predicted, ICON surprised by delivering a statutory profit of US$2.25 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for ICON
Taking into account the latest results, the current consensus from ICON's 13 analysts is for revenues of US$8.63b in 2024. This would reflect a satisfactory 4.9% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 19% to US$9.85. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$8.64b and earnings per share (EPS) of US$9.67 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$354. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic ICON analyst has a price target of US$385 per share, while the most pessimistic values it at US$268. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that ICON's revenue growth is expected to slow, with the forecast 6.5% annualised growth rate until the end of 2024 being well below the historical 28% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.4% annually. So it's pretty clear that, while ICON's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at US$354, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on ICON. Long-term earnings power is much more important than next year's profits. We have forecasts for ICON going out to 2026, and you can see them free on our platform here.
You can also see whether ICON is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
