DUBLIN, Ireland (CBS.MW) -- ICON lost over half its value Tuesday
after the clinical research services company said it expects earnings
shortfalls for the fiscal year and fourth quarter.
The Dublin, Ireland-based company (ICLR) said
earnings will increase by over 30 percent, rather
than over 40 percent as analysts had expected.
Peter Dooley, a spokesmen for Icon, said full-year
earnings will be about 67 cents a share, falling 7
cents below the consensus estimate of analysts at
First Call Corp.
Fourth-quarter earnings will fall 5 cents to 6 cents
short of the First Call consensus estimate of 19
cents, Dooley said.
On that news, shares screamed 51 percent lower,
plunging 13 5/8 to 13 1/8.
ICON said that during the quarter an undisclosed
client curtailed a project, contributing to the
earnings shortfall.
"In the last quarter, one such project has been
scaled back, for reasons internal to the client, removing almost $5 million
from our backlog, of which $1.6 million was expected to be earned in our
current quarter and the balance in the first half of our next fiscal year," said
Chairman Ronan Lambe in a press release.
Icon also said that earnings per share for fiscal 2000, would be similar to
that of fiscal 1999.
"We remain confident that our business can
continue to grow at over 30 percent per year in the
long term," Icon said.
The company also reported that third-quarter
income was $2.1 million, or 19 cents a share, up
from $1 million, or 13 cents last year. Analysts
surveyed by First Call were expecting the company
to post an 18-cent profit.
Revenue was up 32 percent to $14.7 million from
$11.2 million in the year-ago period.
Icon provides contract clinical research services to the pharmaceutical
industry worldwide. |
