(RTTNews) - Icon Plc (ICLR: News ), a contract research firm, reported Wednesday an increase in third-quarter profit that came in above analysts' estimate, helped mainly by lower overheads. The company also raised its earnings guidance for fiscal 2009.

For the third quarter, net income rose to $23.95 million or $0.40 per share from $21.38 million or $0.35 per share in the previous year. On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share in the third quarter. Analysts' estimates typically exclude special items.

Income from operations for the quarter rose 12% to $30.4 million from $27.1 million in the comparable period of the previous year.

Net revenue decreased 2.3% to $220.36 million from $225.51 million. Twelve analysts were expecting revenue of $221.80 million in the third quarter. On a constant organic dollar basis revenues were flat from the past year.

Total costs and expenses reduced year-over-year to $189.95 million from $198.38 million, chiefly reflecting a dip in selling, general and administrative costs to $54.37 million from $62.49 million.

Peter Gray, Icon's Chief Executive, said, "Despite the economic and industry headwinds, ICON has continued to improve margins, grow earnings and significantly improve cashflows enabling us to again raise earnings guidance for 2009. While higher than normal cancellations held back net business awards, the levels of business opportunity continue to be strong and we remain optimistic for the future".
For the nine-month period, net income surged to $63.42 million or $1.06 per share from $57.09 million or $0.93 per share in fiscal 2008. Excluding one-time charges, net income was $67.65 or $1.13 per share.

Revenues grew 2.3% to $660.19 million from $645.15 million in the same period last year.

Looking ahead to the full year, the company raised its earlier outlook, expecting earnings to range from $1.48 to $1.52 per share, excluding previously booked one time net charge. Earlier, the company projected earnings of $1.38 to $1.44 per share for fiscal 2009. Analysts expect the company to report earnings of $1.42 per share.

ICLR closed Tuesday's regular trading hours at $23.57 on the NYSE.

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by RTT Staff Writer

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