Icon ($ICLR) is again reducing its revenue expectations for 2015 but increasing its profit guidance, counting on a big quarter of business wins to balance some sluggish backlog conversion.
Revenue came in at $388.7 million in the second quarter, a 3.4% increase in real dollars and a 9% jump in constant currency. The total falls short of analyst estimates, which had Icon grossing about $403 million on the quarter, according to Zacks. However, the CRO's profits soared 44% to $58.6 million.
Icon is now reducing its full-year revenue expectations by about 3% at midpoint, looking for about $1.6 billion, to account for some difficulties turning backlogged orders into bookable sales, the company said. At the same time, the Irish contractor is increasing its 2015 earnings guidance by 9%.
Despite the revenue misstep, Icon believes it's still on track for a big year. The company pulled in a record $486 million in new business last quarter, boosting its backlog by 8% and giving it a book-to-bill ratio of 1.25.
- read the results