Buys ICON 7.25

For the full year 2015, the Company is revising its guidance as follows:

  • The Company is revising its 2015 licensing revenue guidance to a range of $370 million—$380 million from $410 million—$425 million.
  • The Company is revising its 2015 “Other Revenue” guidance to zero from $5 million to $15 million.
    • Total revenues estimates for the year were $421-7 mln
  • The Company is revising its 2015 non-GAAP diluted EPS guidance to a range of $1.35—$1.40 from $2.00—$2.15.
    • Full year non-GAAP EPS estimate are for $2.07

The Company also remains engaged in a previously disclosed comment letter process with the Staff of the U.S. Securities and Exchange Commission relating to an ongoing review of the Company’s Form 10-K for the year ended December 31, 2014. The ultimate outcome of the Staff’s comment letter process is unknown at this time.

ICON also restated earnings for 2013,2014 and the first half of 2015.

The reason for the buy is the guidance of 1.35 to 1.40 for FY 2015. That and the resolution of the accounting problems that have plagued the company.

A P/E of 8 gets us back to 10.80 and 10 P/E would be 13.50.

This may not be the bottom here as ICON hit 6.40 last night in the after market on this news.

Leave a Reply