ICON Plc shares plunged in premarket trading after the health care services contractor said it may have overstated some of its past revenue and pulled its guidance for the year.
U.S.-listed ICON said preliminary findings of a probe initiated last year found that 2023 and 2024 revenue may have been overstated by "less than 2%" for each fiscal year, according to a Thursday statement. Shares fell as much as 37% before the bell.
"The company is in the process of evaluating the design and operation of certain internal controls over financial reporting and expects to report one or more material weaknesses as a result," it said. The investigation primarily focuses on revenue recognition in fiscal years 2023 through 2025.
As a result of the investigation, the company said "normal quarter and year-end reporting processes" were delayed and it will release its fourth-quarter earnings no later than April 30.
