ICON Issues Financial Guidance for Full Year 2020
January 14 2020 - 6:00AM
Business Wire
Highlights
- Full Year 2020 Revenue guidance in the range of $2,972 - $3,092
million, representing growth of 5.8 – 10.0%.
- Full Year 2020 Earnings per share guidance in the range of
$7.55 - $7.85, representing growth of 9.7 – 14.1%.
- Guidance includes intention to repurchase one million shares
during 2020.
- Reaffirming 2019 guidance of revenue in the range of $2,790 -
$2,830 million and earnings in the range of $6.81 – $6.95.
ICON plc (NASDAQ: ICLR), global provider of
outsourced drug and device development and commercialisation
services to pharmaceutical, biotechnology, medical device and
government and public health organisations, today announced its
financial guidance for the year ended December 31, 2020. For the
full year 2020 revenue is expected to be in the range of $2,972 -
$3,092 million, representing growth of 5.8 – 10.0% and earnings per
share is expected to be in the range of $7.55 - $7.85, representing
growth of 9.7 – 14.1%.
CEO Steve Cutler commented “The benefits of ICON’s
differentiated Patient, Site and Data strategy continue to gain
traction with both new and existing customers as evidenced by our
trailing twelve month book to bill of 1.32x. Supported by strong
industry fundamentals, we expect this positive momentum to continue
into 2020 and consequently we expect revenue to grow by 5.8 – 10%
to a range of $2,972 - $3,092 million. Furthermore, by remaining
focused on cost efficiencies and leveraging our global support
infrastructure, we expect earnings per share to increase by 9.7 –
14.1% to a range of $7.55 - $7.85. In addition to this organic
growth, we will continue to actively deploy capital to maximise
shareholder value through a combination of M&A and share
repurchases.”
The full year 2020 financial guidance assumes:
- US dollar to Euro exchange rate of $1.11.
- An effective tax rate of circa 12 - 13%.
- Circa $350 million - $370 million of free cash flow and capital
expenditures of circa $55 million.
- Share repurchases of one million shares to be executed
opportunistically during 2020 depending on cash commitments to
support M&A pipeline.
With respect to 2019, the company reaffirmed its current
guidance of revenue in the range of $2,790 - $2,830 million and
earnings in the range of $6.81 – $6.95.
ICON will be presenting at the JP Morgan Healthcare Conference
on January 14th at 10:30am PST (1:30pm EST, 6:30pm 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 following the
call.
About ICON plc
ICON plc is a global provider of outsourced drug and device
development and commercialisation services to pharmaceutical,
biotechnology, medical device and government and public health
organisations. 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
operates from 99 locations in 40 countries and had approximately
14,600 employees as at September 30, 2019. Further information is
available at www.iconplc.com.
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/ICLR-F
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Investor Relations +1 888 381 7923
Brendan Brennan, Chief Financial Officer +353 1 291 2000
Jonathan Curtain, Vice President Corporate Finance and Investor
Relations +353 1 291 2000
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