ICON Issues Financial Guidance for Full Year 2017
Full Year 2017 Revenue guidance in the range of $1,700 - $1,750
million, representing growth of 2 - 5%.
Full Year 2017 Earnings per share guidance in the range of $5.00 -
$5.20, representing growth of 6 - 11%.
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, 2017. For the full year 2017 revenue
will be in the range of $1,700 - $1,750 million, representing growth of
2 - 5% and earnings per share will be in the range of $5.00 - $5.20,
representing growth of 6 - 11%.
CEO Ciaran Murray commented "We expect 2017 to be another year of
revenue and earnings growth for ICON. Our success in developing new
customer relationships has further diversified our customer base and we
expect to grow revenue by 2 - 5% while reducing the full year
concentration of our largest customer to circa 15 - 17%. We continue to
see good demand across all of our service lines from large pharma
customers alongside a continuing flow of business from mid-size,
speciality pharma and device companies. In addition to this organic
growth we will continue to deploy capital to maximize shareholder value
through a combination of "bolt-on" M&A that will enhance our
capabilities and share repurchases."
The full year 2017 financial guidance assumes:
Top customer concentration to reduce to circa 15 - 17% of revenue from
circa 24 - 26% in 2016.
US dollar to Euro exchange rate of $1.05 (constant currency revenue
growth of circa 3 - 6%).
An effective tax rate of circa 14%.
Circa $300 million of free cash flow and capital expenditures of circa
$110 million worth of shares repurchased in Q4 2016 from current $400
million repurchase programme contributing circa 10c to 2017 earnings.
Remaining authorisation of $290 million to be executed
opportunistically during 2017 depending on cash commitments to support
M&A pipeline, no additional earnings benefit included in guidance.
With respect to 2016, the company confirmed its current guidance, of
earnings in the range of $4.60 - $4.80 and revenue in the range of
$1,665 - $1,680 million.
ICON will be presenting at the JP Morgan Healthcare Conference on January
10th at 8:00am PT (11:00am EST, 4:00pm 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
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 88
locations in 37 countries and has approximately 12,600 employees.
Further information is available at www.iconplc.com.
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Source: ICON plc
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