Icon's 1Q profit slides 30 pct as expenses rise
Icon's 1st quarter profit slides 30 percent as expenses counter revenue gains
Icon PLC, which provides development services to drug and medical device makers, said Tuesday its first quarter net income sank 30 percent, as growth in costs and expenses countered a revenue gain.
The Irish company earned about $9 million, or 15 cents per share, in the three months that ended March 31. That compares to earnings of $12.8 million, or 21 cents per share, in the previous year's quarter.
Revenue climbed 12 percent to $343.1 million. Net revenue, which does not include reimbursable expenses, was $252.3 million.
Analysts surveyed by FactSet expected, on average, earnings of 14 cents per share on $253.8 million in revenue.
Icon's total costs and expenses climbed 13 percent to $240.6 million, as direct costs rose to $162.3 million from $144.5 million.
The company said it spent $48.6 million to buy Beijing Wits Medical Consulting Ltd and PriceSpective LLC.
Icon CEO Ciaran Murray said in a statement that the company's revenue growth and earnings per share are benefits of its strategic investment decisions.
U.S.-traded shares of Icon dropped 30 cents, to $20.65 in morning trading. The stock has changed hands between $15.03 and $26.22 in the past 52 weeks.
