ICON Public Limited Company Just Recorded A 8.9% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in ICON Public Limited Company (NASDAQ:ICLR) had a good week, as its shares rose 7.0% to close at US$308 following the release of its first-quarter results. ICON reported US$2.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.25 beat expectations, being 8.9% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for ICON

After the latest results, the 13 analysts covering ICON are now predicting revenues of US$8.64b in 2024. If met, this would reflect a credible 5.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 19% to US$9.85. Before this earnings report, the analysts had been forecasting 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.

There were no changes to revenue or earnings estimates or the price target of US$354, suggesting that the company has met expectations in its recent result. 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. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that ICON's revenue growth is expected to slow, with the forecast 6.7% annualised growth rate until the end of 2024 being well below the historical 28% p.a. growth over the last five years. Compare this to the 61 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.4% per year. 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 estimates - from multiple ICON analysts - going out to 2026, and you can see them free on our platform here.

You can also view our analysis of ICON's balance sheet, and whether we think ICON is carrying too much debt, for free on our platform here.

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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.