ICON Issues Financial Guidance for Full Year 2024
January 09 2024 - 8:00AM
Business Wire
Highlights
- Full Year 2024 Revenue guidance in the range of $8,400 - $8,800
million, representing growth of 3.2% – 8.1% over Full Year 2023
Revenue guidance midpoint.
- Full Year 2024 adjusted earnings per share1 guidance in the
range of $14.50 - $15.30, representing growth of 13.5% – 19.8% over
Full Year 2023 adjusted earnings per share guidance midpoint.
ICON plc, (NASDAQ: ICLR), a world-leading clinical
research organization powered by healthcare intelligence, today
announced its financial guidance for the year ending December 31,
2024. For the full year 2024, revenue is expected to be in the
range of $8,400 - $8,800 million, representing growth of 3.2% –
8.1%, and adjusted earnings per share1 is expected to be in the
range of $14.50 - $15.30, representing growth of 13.5% – 19.8%,
over Full Year 2023 revenue and adjusted earnings per share
guidance midpoints, respectively.
CEO Dr. Steve Cutler commented, “ICON’s position as the market
leading provider of clinical development services continues to
strengthen with the increased scale of our offering and consistent
operational execution for our customers. We remain focused on
driving efficiency in clinical trials through investments in
automation, innovative tools and initiatives to increase
participation for sites and patients in clinical research. Our
outlook for 2024 indicates a positive demand environment across our
segments, notwithstanding continuing macroeconomic pressures faced
by our customers, resulting in full year revenue guidance in the
range of $8,400 - $8,800 million and adjusted earnings per share in
the range of $14.50 - $15.30.”
Full year 2024 financial guidance assumptions:
- An effective tax rate of circa 16.5%.
- Circa $1.1 billion of free cash flow and capital expenditures
in the range of $150 - $200 million.
- Interest expense in the range of $200 – $230 million.
- Adjusted EBITDA margin expansion of circa 50 bps over Full Year
2023 Adjusted EBITDA margin.
- Excludes any potential share repurchase or additional M&A
activity.
With respect to Full Year 2023, the company reaffirmed its
current guidance of revenue in the range of $8,070 - $8,210 million
and adjusted earnings per share1 in the range of $12.63 -
$12.91.
1 The full-year 2023 and 2024 guidance adjusted earnings per
share measures are provided on a non-GAAP basis because the company
is unable to predict with a reasonable degree of certainty certain
items contained in the GAAP measures without unreasonable efforts.
For the same reasons, the company is unable to address the probable
significance of the unavailable information.
About ICON plc
ICON plc is a world-leading healthcare intelligence and clinical
research organization. From molecule to medicine, we advance
clinical research providing outsourced services to pharmaceutical,
biotechnology, medical device and government and public health
organizations. We develop new innovations, drive emerging therapies
forward and improve patient lives. With headquarters in Dublin,
Ireland, ICON employed approximately 41,150 employees in 106
locations in 53 countries as at September 30, 2023. For further
information about ICON, visit: www.iconplc.com.
This press release contains forward-looking statements,
including statements regarding our financial guidance. 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, the impact of
COVID-19 on our business, as well as other 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,
F-4, S-8, F-3 and certain other reports, which are available on the
SEC's website at http://www.sec.gov.
In addition to the financial measures prepared in accordance
with generally accepted accounting principles (GAAP), this press
release contains certain non-GAAP financial measures, including
adjusted EBITDA and adjusted earnings per share. Adjusted EBITDA
and adjusted earnings per share excludes amortization, stock
compensation, foreign exchange gains and losses, and restructuring
and transaction-related / integration-related adjustments. While
non-GAAP financial measures are not superior to or a substitute for
the comparable GAAP measures, ICON believes certain non-GAAP
information is useful to investors for historical comparison
purposes.
ICON/ICLR-F
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