ICON Earnings: Here’s Why the Stock is Up Now

ICON plc (NASDAQ:ICLR) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 9.45%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

ICON plc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 140% to $0.36 in the quarter versus EPS of $0.15 in the year-earlier quarter.

Revenue: Rose 25.63% to $317 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ICON plc reported adjusted EPS income of $0.36 per share. By that measure, the company beat the mean analyst estimate of $0.34. It beat the average revenue estimate of $302.29 million.

Quoting Management: CEO Ciaran Murray commented, “Q1 represents an encouraging start to 2013. Revenue increased year on year by 26%, and we continued to make progress in expanding our operating margins, reaching 8.7% in the quarter. We reported net new business of $422 million, a book to bill of 1.3, giving us a solid foundation upon which to build during the remainder of 2013.”

Key Stats (on next page)…

Revenue increased 11.03% from $285.5 million in the previous quarter. EPS increased 5.88% from $0.34 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.36 to a profit $0.37. For the current year, the average estimate has moved up from a profit of $1.48 to a profit of $1.54 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)