ICON Public Limited Company (ICLR) Bundle
A Brief History of ICON plc
ICON plc, a leading global provider of outsourced development and commercialization services to the pharmaceutical, biotechnology, and medical device industries, has evolved significantly since its establishment in 1990. Headquartered in Dublin, Ireland, ICON has expanded its operations across 106 locations in 55 countries, employing approximately 42,250 employees as of September 30, 2024.
Recent Financial Performance
As of the third quarter of 2024, ICON reported a revenue of $2,030 million, representing a decrease of 1.2% compared to the same period in the previous year. The company’s GAAP net income for the quarter was $197.1 million, translating to $2.36 per diluted share, which reflects a year-over-year increase of 19.8%. Adjusted net income for the quarter stood at $279.2 million, or $3.35 per diluted share, up from $3.30 in the third quarter of 2023.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Revenue | $2,030 million | $2,055 million | $6,240.6 million | $6,053.9 million |
| GAAP Net Income | $197.1 million | $163.7 million | $531.5 million | $395.9 million |
| Adjusted Net Income | $279.2 million | $273.9 million | $880.3 million | $770.7 million |
| Diluted EPS (GAAP) | $2.36 | $1.97 | $6.38 | $4.79 |
| Diluted EPS (Adjusted) | $3.35 | $3.30 | $10.57 | $9.31 |
Operating Metrics
For the year-to-date 2024, ICON reported gross business wins of $9,017 million against cancellations of $1,457 million, resulting in net business wins of $7,560 million and a book-to-bill ratio of 1.21. The effective tax rate on adjusted net income in Q3 2024 was 16.5%.
Balance Sheet Highlights
As of September 30, 2024, ICON's total assets were valued at $17.2 billion, with total liabilities amounting to $7.4 billion. The company's shareholders' equity was approximately $9.77 billion.
| Balance Sheet Item | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $17.2 billion | $17.0 billion |
| Total Liabilities | $7.4 billion | $7.7 billion |
| Shareholders' Equity | $9.77 billion | $9.24 billion |
Market Position and Strategic Developments
ICON has positioned itself as a strategic partner to top pharmaceutical companies, evidenced by securing significant partnerships that are expected to bolster its pipeline. The company has also been proactive in managing its capital, with $100 million worth of stock repurchased at an average price of $297 during Q3 2024.
Outlook
Looking ahead, ICON has updated its full-year 2024 revenue guidance to a range of $8.26 billion to $8.30 billion, indicating a year-over-year growth of 1.7% to 2.2%. Adjusted earnings per share guidance has been revised to between $13.90 and $14.10, representing an increase of 8.7% to 10.2% compared to the previous year.
A Who Owns ICON Public Limited Company (ICLR)
Major Shareholders
As of 2024, the ownership structure of ICON Public Limited Company (ICLR) is characterized by a mix of institutional and individual shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder | Type of Ownership | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | Institutional | 8.5% |
| BlackRock, Inc. | Institutional | 7.2% |
| Wellington Management Group LLP | Institutional | 5.1% |
| State Street Corporation | Institutional | 4.8% |
| FMR LLC (Fidelity) | Institutional | 4.5% |
| Other Institutional Investors | Institutional | 35.0% |
| Retail Investors | Individual | 25.0% |
Stock Performance
As of late September 2024, ICON's stock has demonstrated a robust performance trajectory, with a current share price of approximately $297. The company has executed a significant stock repurchase program, having repurchased $100 million worth of shares at an average price of $297 during the third quarter of 2024.
Financial Overview
ICON's financial performance for the year to date in 2024 includes:
- Year-to-date revenue: $6,240.6 million, a year-on-year increase of 3.1%.
- GAAP net income: $531.5 million, resulting in $6.38 diluted earnings per share, an increase of 33.2% year-over-year.
- Adjusted net income: $880.3 million, resulting in an adjusted diluted earnings per share of $10.57, an increase of 13.5% year-over-year.
- Adjusted EBITDA: $1,313.2 million, representing 21.0% of revenue, a year-on-year increase of 5.4%.
Debt and Cash Position
As of September 30, 2024, ICON reported:
- Net indebtedness: $2.7 billion.
- Cash and cash equivalents: $695.5 million, up from $506.6 million at June 30, 2024.
- Cash generated from operating activities for the quarter: $402.7 million.
Market Capitalization
The market capitalization of ICON Public Limited Company as of September 30, 2024, is approximately $24.5 billion.
ICON Public Limited Company (ICLR) Mission Statement
ICON plc is a world-leading healthcare intelligence and clinical research organization. The company is dedicated to advancing clinical research by providing outsourced services to pharmaceutical, biotechnology, medical device, and government organizations. Their mission includes developing new innovations, driving emerging therapies forward, and improving patient lives.
Financial Overview
As of September 30, 2024, ICON reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year to Date 2024 | Year to Date 2023 |
|---|---|---|---|---|
| Revenue | $2,030 million | $2,055 million | $6,240.6 million | $6,053.9 million |
| GAAP Net Income | $197.1 million | $163.7 million | $531.5 million | $395.9 million |
| Adjusted Net Income | $279.2 million | $273.9 million | $880.3 million | $770.7 million |
| Adjusted EBITDA | $418.8 million | $432.5 million | $1,313.2 million | $1,245.9 million |
| Diluted Earnings Per Share | $2.36 | $1.97 | $6.38 | $4.79 |
Operational Highlights
In terms of operational performance, ICON achieved:
- Gross Business Wins (YTD): $9,017 million
- Cancellations (YTD): $1,457 million
- Net Business Wins (YTD): $7,560 million
- Book to Bill Ratio (YTD): 1.21
- Closing Backlog: $24.3 billion
Cash Flow and Capital Management
ICON's cash management details for Q3 2024 include:
- Cash Generated from Operating Activities: $402.7 million
- Capital Expenditures: $43.3 million
- Cash and Cash Equivalents: $695.5 million (up from $506.6 million in Q2 2024)
- Net Indebtedness: $2.7 billion
Guidance for 2024
ICON updated its full-year financial guidance:
- Revenue Guidance: $8,260 - $8,300 million
- Adjusted Earnings Per Share Guidance: $13.90 - $14.10
This represents a year-over-year growth of approximately 1.7% to 2.2% for revenue and 8.7% to 10.2% for adjusted earnings per share.
How ICON Public Limited Company (ICLR) Works
Overview of Operations
ICON plc operates as a global healthcare intelligence and clinical research organization. As of September 30, 2024, ICON employed approximately 42,250 employees across 106 locations in 55 countries . The company provides outsourced services to pharmaceutical, biotechnology, medical device, and public health organizations, focusing on advancing clinical research and improving patient lives.
Financial Performance
For the third quarter of 2024, ICON reported a revenue of $2,030 million, representing a decrease of 1.2% compared to the same quarter in the previous year . The company’s year-to-date revenue reached $6,240.6 million, marking a year-over-year increase of 3.1% .
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Revenue | $2,030 million | $2,055 million | $6,240.6 million | $6,053.9 million |
| GAAP Net Income | $197.1 million | $163.7 million | $531.5 million | $395.9 million |
| Adjusted Net Income | $279.2 million | $273.9 million | $880.3 million | $770.7 million |
| Adjusted EBITDA | $418.8 million | $432.5 million | $1,313.2 million | $1,245.9 million |
| Diluted EPS | $2.36 | $1.97 | $6.38 | $4.79 |
Cost Structure and Expenses
In Q3 2024, ICON's total costs and expenses reached $1,744.6 million, slightly decreasing from $1,790.8 million in Q3 2023 . The company incurred direct costs of $1,438.6 million, alongside selling, general, and administrative expenses of $205.1 million .
Business Wins and Backlog
Gross business wins for the third quarter of 2024 amounted to $2,832 million, with cancellations totaling $504 million, resulting in net business wins of $2,328 million . The closing backlog as of September 30, 2024, was $24.3 billion, reflecting a 2.1% increase from Q2 2024 and a 9.4% increase from Q3 2023 .
Cash Flow and Capital Expenditure
Cash generated from operating activities for Q3 2024 was $402.7 million, a 17.9% increase from the prior year . The company allocated $43.3 million towards capital expenditures during the quarter .
| Cash Flow Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Cash Generated from Operating Activities | $402.7 million | $341.1 million |
| Capital Expenditure | $43.3 million | $34.5 million |
| Cash and Cash Equivalents | $695.5 million | $313.1 million |
Debt and Financial Position
As of September 30, 2024, ICON's net indebtedness stood at $2.7 billion, with a net debt to adjusted EBITDA ratio of 1.6x . The company has drawn down $50 million from its revolving credit facility during the quarter and repaid $50 million .
Market Guidance
ICON updated its full-year 2024 revenue guidance to a range of $8,260 to $8,300 million, which represents a year-over-year increase of 1.7% to 2.2% . The adjusted earnings per share guidance was revised to between $13.90 and $14.10, indicating a growth of 8.7% to 10.2% compared to the previous year .
How ICON Public Limited Company (ICLR) Makes Money
Business Segments
ICON plc operates primarily in the healthcare intelligence and clinical research sector, providing a range of services to pharmaceutical, biotechnology, and medical device companies. The two core business segments are:
- Clinical Development Solutions
- Laboratory Services
Revenue Generation
For the year to date 2024, ICON reported total revenue of $6,240.6 million, reflecting a year-on-year increase of 3.1% or 3.2% on a constant currency basis.
Quarterly Financial Performance
In the third quarter of 2024, ICON achieved revenue of $2,030 million, which represents a decrease of 1.2% compared to the same quarter in the previous year.
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Revenue | $2,030 million | $2,055 million | $6,240.6 million | $6,053.9 million |
| GAAP Net Income | $197.1 million | $163.7 million | $531.5 million | $395.9 million |
| Adjusted Net Income | $279.2 million | $273.9 million | $880.3 million | $770.7 million |
| Adjusted EBITDA | $418.8 million | $432.5 million | $1,313.2 million | $1,245.9 million |
| EPS (Diluted) | $2.36 | $1.97 | $6.38 | $4.79 |
Key Financial Metrics
As of September 30, 2024, ICON reported:
- Adjusted EBITDA margin of 21.0% year to date.
- Net business wins year to date of $7,560 million, with a book-to-bill ratio of 1.21.
- Closing backlog of $24.3 billion, a 2.1% increase from the previous quarter.
Operational Cash Flow
Cash generated from operating activities for the third quarter was $402.7 million, an increase of 17.9% from the same period in 2023.
Market Trends and Challenges
ICON faces challenges with budget cuts from key customers and delays in project awards, particularly in the biotech sector. These factors have influenced the revenue growth outlook for the remainder of 2024.
Future Outlook
The company has updated its full-year 2024 revenue guidance, now expecting revenue in the range of $8,260 million to $8,300 million, representing a year-over-year increase of 1.7% to 2.2%.
Adjusted earnings per share for 2024 are projected to be between $13.90 and $14.10, indicating growth of 8.7% to 10.2% compared to 2023.
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Article updated on 8 Nov 2024
Resources:
- ICON Public Limited Company (ICLR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ICON Public Limited Company (ICLR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ICON Public Limited Company (ICLR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.