Icon Reports Strong Q3 Results and Improved Outlook After PRA Deal Closes; Raising FVE to $222

Icon’s third quarter represented its first period as a combined company since its acquisition of PRA Health closed on July 1, and it reported quarterly revenue over $1.8 billion. Management announced an improved 2021 outlook with revenue guidance in the range of $5.43 billion-$5.53 billion and adjusted EPS in the range of $9.55-$9.75, which is a 3.8% increase at midpoint in adjusted EPS from the previous guidance. We’ve updated our model to reflect an improved near-term outlook based on stronger-than-expected performance from the combined company, and we’ve increased our fair value estimate to $222 per share from $185. Our narrow moat and stable moat trend ratings remain unchanged.