Shares of Icon slid in postmarket trading after it reported revenue and earnings-per-share results that missed estimates.
The stock fell 17% to $232.90 in after-hours trading. The shares ended Wednesday’s market session down less than 1% at $280.76. The stock is down 15% in the last three months.
The Ireland-based company reported revenue of $2.03 billion for the third quarter, which missed the $2.13 billion analysts surveyed by FactSet expected. Icon reported adjusted earnings per share of $3.35 compared with the $3.85 forecast by Wall Street, according to FactSet.
“Our revenue shortfall was attributable to more material headwinds from two large customers undergoing budget cuts and changes in their development model, lower- than-anticipated vaccine-related activity, and ongoing cautiousness from biotech customers resulting in award and study delays,” Chief Executive Steve Cutler said. The company expects of those changes to continue in the fourth quarter.
Icon updated its guidance for adjusted earnings per share to $13.90 to $14.10 for the full year.
Icon, a clinical research organization that provides outsourced development services, had raised its adjusted earnings-per-share guidance to $15.00 to $15.20 when it reported second-quarter results in July.