ICON Issues Financial Guidance for Full Year 2018
09 January 2018 - 10:00PM
Business Wire
Highlights
- Full Year 2018 Revenue guidance in the
range of $1,870 - $1,930 million, representing growth of 7 -
10%.
- Full Year 2018 Earnings per share
guidance in the range of $5.89 - $6.09, representing growth of 10 –
13%.
ICON plc (NASDAQ: ICLR), a global provider
of drug development solutions and services to the pharmaceutical,
biotechnology and medical device industries, today announced its
financial guidance for the year ended December 31, 2018. For the
full year 2018 revenue will be in the range of $1,870 - $1,930
million, representing growth of 7 - 10% and earnings per share will
be in the range of $5.89 - $6.09, representing growth of 10 -
13%.
CEO Steve Cutler commented “We expect 2018 to be another strong
year of revenue and earnings progression for ICON. The momentum
created by our positive business win trends has helped diversify
our business by adding new sponsors and partnerships across all
customer segments. Consequently we expect revenue to grow by 7 -
10% to a range of $1,870 - $1,930 million whilst reducing our full
year concentration of our largest customer to circa 12 – 14%.
Furthermore, by leveraging our support infrastructure, we aim to
continue our best in industry cost management approach and expect
earnings per share to increase by 10 – 13% to a range of $5.89 -
$6.09. In addition to this organic growth, we will continue to
focus on deploying capital to maximise shareholder value through a
combination of M&A and share repurchases.”
The full year 2018 financial guidance assumes:
- Top customer concentration to reduce to
circa 12 - 14% of revenue from circa 18% in 2017.
- US dollar to Euro exchange rate of
$1.20 (constant currency revenue growth of circa 7%).
- An effective tax rate of circa
12%.
- Circa $360 million of free cash flow
and capital expenditures of circa $50 million.
- $25 million worth of shares repurchased
in Q4 2017 from current up to $400 million repurchase programme
contributing circa 3c to 2018 earnings.
- Remaining authorisation of up to $157
million to be executed opportunistically during 2018 depending on
cash commitments to support M&A pipeline, no additional
earnings benefit included in guidance.
With respect to 2017, the company confirmed its current
guidance, of revenue in the range of $1,740 – $1,770 million and
earnings in the range of $5.30 - $5.40.
ICON will be presenting at the JP Morgan Healthcare Conference
on January 9th at 9:30am PT (12:30pm EST, 5:30pm
Ireland & UK). This presentation and follow-on Q&A can
be accessed live from the ICON website at
http://investor.iconplc.com. A recording will also be available on
the website for 90 days following the call.
This press release contains forward-looking statements. These
statements are based on management's current expectations and
information currently available, including current economic and
industry conditions. These statements are not guarantees of future
performance or actual results, and actual results, developments and
business decisions may differ from those stated in this press
release. The forward-looking statements are subject to future
events, risks, uncertainties and other factors that could cause
actual results to differ materially from those projected in the
statements, including, but not limited to, the ability to enter
into new contracts, maintain client relationships, manage the
opening of new offices and offering of new services, the
integration of new business mergers and acquisitions, as well as
economic and global market conditions and other risks and
uncertainties detailed from time to time in SEC reports filed by
ICON, all of which are difficult to predict and some of which are
beyond our control. For these reasons, you should not place undue
reliance on these forward-looking statements when making investment
decisions. The word "expected" and variations of such words and
similar expressions are intended to identify forward-looking
statements. Forward-looking statements are only as of the date they
are made and we do not undertake any obligation to update publicly
any forward-looking statement, either as a result of new
information, future events or otherwise. More information about the
risks and uncertainties relating to these forward-looking
statements may be found in SEC reports filed by ICON, including its
Form 20-F, F-1, S-8 and F-3, which are available on the SEC's
website at http://www.sec.gov.
ICON plc is a global provider of drug development solutions and
services to the pharmaceutical, biotechnology and medical device
industries. The company specialises in the strategic development,
management and analysis of programs that support clinical
development - from compound selection to Phase I-IV clinical
studies. With headquarters in Dublin, Ireland, ICON currently,
operates from 97 locations in 38 countries and has approximately
13,100 employees. Further information is available at
www.iconplc.com.
ICON/ICLR-F
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version on businesswire.com: http://www.businesswire.com/news/home/20180109005839/en/
ICON plcInvestor Relations1-888-381-7923orBrendan BrennanChief
Financial Officer+ 353 –1-291-2000orJonathan CurtainVice President
Corporate Finance and Investor Relations+1 215-616-3000
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