Company Reports

Narrow-moat Icon reported strong first-quarter results highlighted by revenue exceeding $2 billion, representing a nearly 6% increase from the prior-year period, thanks to stabilizing demand within the biotech customer base. We continue to have a positive outlook for Icon, and we maintain our fair value estimate of $268 per share. However, we view the stock as currently trading at a 12% premium to our fair value estimate.

Icon ended 2023 in a healthy position with revenue of $8.12 billion, a nearly 5% increase from the previous year, and adjusted EBITDA growth exceeding 14%. We continue to have a positive outlook for the firm and have raised our fair value estimate to $268 per share from $243 based on Icon’s strong results despite challenging macroeconomic conditions. We reaffirm our narrow economic moat rating as well as our Medium Morningstar Uncertainty Rating. Despite our positive outlook, we view the stock as currently overvalued. Investors have pushed the stock up 40% since Icon reported third-quarter results in October, due to stronger-than-expected performance amid macroeconomic pressures.

We believe Icon possesses all the necessary elements to win share in the late-stage contract research organization market: global capabilities, full-service offerings, extensive regulatory and clinical expertise, investment in innovation and technology, and operational excellence. Icon is one of a handful of CROs with the global infrastructure to carry out late-stage, multinational trials and hone international regulatory expertise.

Icon reported solid third-quarter results, highlighted by revenue exceeding $2 billion, representing an increase of nearly 6% from the prior-year period. We continue to have a positive outlook for the firm, and we maintain our fair value estimate of $243 per share. We reaffirm our narrow economic moat and Medium Uncertainty Ratings for Icon. We view shares as fairly valued, and the stock is currently trading in 3-star territory.

Icon reported solid second-quarter results highlighted by revenue exceeding $2 billion, representing an increase of 4% from the prior-year period. We have raised our fair value estimate to $243 per share from $234, which is due to strong customer demand and the time value of money since our last update. We continue to have a positive outlook for the firm, and we reaffirm our narrow economic moat and medium uncertainty ratings for Icon. The stock has moved into 3-star territory as it has increased about 30% since Icon reported its first-quarter results in April. We view shares as currently trading just above our fair value estimate.

We believe Icon possesses all the necessary elements to win share in the late-stage contract research organization market: global capabilities, full-service offerings, extensive regulatory and clinical expertise, investment in innovation and technology, and operational excellence. Icon is one of a handful of CROs with the global infrastructure to carry out late-stage, multinational trials and hone international regulatory expertise.

Icon reported strong first-quarter results highlighted by revenue of $1.98 billion, representing an increase of 4% from the prior-year period. We maintain our fair value estimate of $234 per share, and we continue to have a positive outlook for the firm. We reaffirm our narrow economic moat, stable moat trend, and medium uncertainty ratings for Icon. Shares are currently trading in 4-star territory about 19% below our fair value estimate.

Icon reported strong fourth-quarter results highlighted by revenue of $1.9 billion, representing an increase of 4% from the prior-year period. Full-year revenue of $7.7 billion represented an increase of 41% over 2021, thanks to the contribution of Icon’s acquisition of PRA Health Sciences. We have increased our fair value estimate to $234 per share from $223, which is primarily due to continued strong demand and the time value of money since our last update. We maintain our narrow economic moat, stable moat trend, and medium uncertainty ratings for Icon. Shares are currently trading in 3-star territory about 4% below our fair value estimate.

We believe Icon possesses all the necessary elements to win share in the late-stage contract research organization market: global capabilities, full-service offerings, extensive regulatory and clinical expertise, investment in innovation and technology, and operational excellence. Icon is one of a handful of CROs with the global infrastructure to carry out late-stage, multinational trials and hone international regulatory expertise.

Icon issued solid guidance for fiscal-year 2023 broadly in line with our expectations. We expect the firm will achieve 2023 adjusted earnings per share of $12.75 and revenue of $8.14 billion, representing year-over-year sales growth of 5%. We maintain our $223 fair value estimate, narrow moat, stable moat trend, and medium uncertainty ratings.

Icon reported third-quarter revenue of $1.9 billion, highlighted by net business wins over $2.3 billion. Icon’s solid results were in line with our expectations, and we maintain our $223 fair value estimate. We forecast 2022 revenue will be about $7.75 billion and adjusted EPS will reach $11.74. Our narrow moat and stable moat trend ratings remain unchanged. We view shares as undervalued, currently trading in 4-star territory, about 11% below our fair value estimate.

Icon reported second-quarter revenue of $1.9 billion, highlighted by net business wins of $2.3 billion. Icon’s results were largely in line with our expectations, and we maintain our $223 fair value estimate. Our narrow economic moat and stable moat trend ratings remain unchanged. We view shares as fairly valued, currently trading in 3-star territory.

We believe Icon possesses all the necessary elements to win share in the late-stage contract research organization market: global capabilities, full-service offerings, extensive regulatory and clinical expertise, investment in innovation and technology, and operational excellence. Icon is one of a handful of CROs with the global infrastructure to carry out late-stage, multinational trials and hone international regulatory expertise.

Icon reported solid first-quarter revenue of $1.9 billion, highlighted by record net business wins of $2.4 billion. We maintain our $223 fair value estimate, our narrow economic moat, and our stable moat trend ratings. We view shares as fairly valued, currently trading in 3-star territory.

We believe Icon possesses all the necessary elements to win share in the late-stage contract research organization market: global capabilities, full-service offerings, extensive regulatory and clinical expertise, investment in innovation and technology, and operational excellence. Icon is one of a handful of CROs with the global infrastructure to carry out late-stage, multinational trials and hone international regulatory expertise.

Icon reported solid fourth-quarter revenue of $1.8 billion and ended the year with total revenue of nearly $5.5 billion, in line with expectations. Icon’s acquisition of PRA Health Sciences, which closed in the middle of 2021, combined the fifth- and sixth-largest CROs by 2020 revenue. The combined 2021 revenue represented a 96% increase from Icon’s stand-alone revenue in 2020.

We believe Icon possesses all the necessary elements to win share in the late-stage contract research organization market: global capabilities, full-service offerings, extensive regulatory and clinical expertise, investment in innovation and technology, and operational excellence. Icon is one of a handful of CROs with the global infrastructure to carry out late-stage, multinational trials and hone international regulatory expertise.

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.

We believe Icon possesses all the necessary elements to win share in the late-stage contract research organization market: global capabilities, full-service offerings, extensive regulatory and clinical expertise, investment in innovation and technology, and operational excellence. Icon is one of a handful of CROs with the global infrastructure to carry out late-stage, multinational trials and hone international regulatory expertise.

Icon reported second-quarter revenue of $871 million, representing over a 40% increase from the prior-year period. The company has completed its acquisition of PRA Health Sciences, and management announced an updated 2021 outlook with revenue guidance of $5.3 billion-$5.5 billion for the combined company. Due to the improved outlook for the year and greater synergies from the acquisition, we’ve increased our fair value estimate to $185 per share from $173. Our narrow moat and stable moat trend ratings are unchanged.