Icon PLC Shares Plunge 14% on $20 Million Accounting Investigation
ICON PLC launched an internal accounting probe into potential revenue misstatements of up to $20 million in its Latin American operations, warning this could slash 2025 earnings per share by $0.15; shares plunged 14% in early trading Thursday. The company expects to complete the investigation by late Q2 and adjust its full-year guidance accordingly.
1. Accounting Investigation Initiated
ICON PLC disclosed it has identified potential irregularities in revenue reporting within its Latin American unit, prompting an internal probe that estimates misstatements could reach $20 million.
2. Stock Market Reaction
Following the announcement, ICON shares fell 14% in early trading as investors reacted to the prospect of significant charges and guidance revisions.
3. Earnings Guidance Impact
The company warned the ongoing review could reduce 2025 earnings per share by approximately $0.15, pressuring analysts to lower full-year forecasts.
4. Investigation Timeline and Next Steps
ICON expects to complete the accounting review by late Q2, after which it will release any necessary restatements and updated financial guidance.