Icon clinical trials specialist reports 48% rise in profits

ICON, the Dublin-based clinical trials and medical devices specialist, has again increased its full-year guidance for its current fiscal year, after its second quarter figures comfortably beat market estimates.

The pharmaceutical services company, which is listed on New York’s Nasdaq exchange, yesterday reported a 48.5% year-on- year rise in net revenues to $218.3 million (€137.2m) for the three months to the end of June.

Irish-based analysts had initially forecast net revenue gains for the company of 42% to just over $209m. For the first half of its financial year, Icon has now seen a year-on-year rise in net revenue of 48.2% to $419.6m.

Second-quarter operating profit came in at $24.4m, representing a 52% increase on the same period last year. Diluted earnings per share were up by 17c to 62c and net new business wins for the period amounted to $337m in value, comfortably beating analyst expectations.

According to the company’s chief executive, Peter Gray: “As a result of these strong business wins we continue to expand our global capability through opening new offices and hiring new staff and we now have in excess of 6,500 staff working in 71 offices in 38 countries.”

The company’s operating margin grew from 10.9% to 11.2%, year-on-year and its net cash amounts hit $6.9m, compared to a net debt of $20.2m last year after the first quarter of last year.

Now, the company is expecting to see revenue of between $870m and $890m and earnings per share of between $2.46 and $2.52.