IQVIA Holdings Inc. (IQV - Free Report) reported solid third-quarter 2019 results wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.60 beat the consensus mark by 3 cents and increased 12.7% on a year-over-year basis. The reported figure exceeded the guided range of $1.53-$1.59.
Total revenues of $2.77 billion outpaced the consensus estimate by $5 million and increased 6.7% year over year on a reported basis and 7.9% on a constant-currency basis. The reported figure came within the guided range of $2.73 billion-$2.78 billion.
So far this year, shares of IQVIA have gained 29.2%, outperforming the 10.9% rally of the industry it belongs to.
Let’s check out the numbers in detail
Segmental Revenues
Revenues from Technology & Analytics Solutions (TAS) totaled $1.10 billion, up 8% on a reported basis and 10% on a constant-currency basis. The segment accounted for 40% of total revenues.
Research & Development Solutions (R&DS) revenues of $1.47 billion increased 6.1% on a reported basis and 6.8% on a constant-currency basis. The segment contributed 53% to total revenues.
Revenues from Contract Sales & Medical Solutions (CSMS) totaled $208 million, up 5.1% on a reported as well as constant-currency basis. The segment accounted for 7% of total revenues.
Operating Performance
Adjusted EBITDA was $593 million, up 5.7% year over year. Adjusted EBITDA margin declined to 21.4% from 21.6% in the year-ago quarter.
Operating income was $204 million, up 12.7% from the year-ago quarter. Operating income margin increased to 7.4% from 7% in the year-ago quarter.
Total selling, general and administrative expenses of $395 million were down 7.9% from the year-ago quarter.
Balance Sheet and Cash Flow
IQVIA exited the quarter with cash and cash equivalents balance of $863 million compared with $938 million at the end of the prior quarter. Long-term debt at the end of the quarter was $11.4 billion compared with $11.3 billion at the end of the previous quarter.
The company generated $330 million of cash from operating activities in the reported quarter and CapEx was $149 million. IQVIA repurchased shares worth $313 million during the quarter.
Q4 Guidance
For fourth-quarter 2019, IQVIA projects adjusted earnings per share in the range of $1.65-$1.75. The current Zacks Consensus Estimate is pegged at $1.75.
Revenues are expected between $2.807 billion and $2.857 billion. The current Zacks Consensus Estimate stands at $2.89 billion.
Adjusted EBITDA is anticipated in the range of $635-$649 million.
2019 Guidance
IQVIA updated its guidance for full-year 2019.
The company now projects adjusted earnings between $6.30 and $6.40 per share compared with the previously guided range of $6.25-$6.45. The current Zacks Consensus Estimate of $6.39 lies within the guided range.
Revenues are now expected between $11 billion and $11.05 billion compared with the previously guided range of $11-$11.15 billion. The current Zacks Consensus Estimate of $11.08 billion lies above the guided range.
Adjusted EBITDA is now anticipated in the range of $2,393 - $2,407 million compared with the previously guided range of $2,385 - $2,415 million.
Zacks Rank & Other Stocks to Consider
Currently, IQVIA carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Business Services sector are FleetCor , S&P Global (SPGI - Free Report) and Paychex (PAYX - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings (three to five years) growth rate for FleetCor, S&P Global and Paychex is estimated at 15.6%, 10% and 7%, respectively.
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IQVIA Holdings Inc. (IQV - Free Report) reported solid third-quarter 2019 results wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.60 beat the consensus mark by 3 cents and increased 12.7% on a year-over-year basis. The reported figure exceeded the guided range of $1.53-$1.59.
Total revenues of $2.77 billion outpaced the consensus estimate by $5 million and increased 6.7% year over year on a reported basis and 7.9% on a constant-currency basis. The reported figure came within the guided range of $2.73 billion-$2.78 billion.
So far this year, shares of IQVIA have gained 29.2%, outperforming the 10.9% rally of the industry it belongs to.
Let’s check out the numbers in detail
Segmental Revenues
Revenues from Technology & Analytics Solutions (TAS) totaled $1.10 billion, up 8% on a reported basis and 10% on a constant-currency basis. The segment accounted for 40% of total revenues.
Research & Development Solutions (R&DS) revenues of $1.47 billion increased 6.1% on a reported basis and 6.8% on a constant-currency basis. The segment contributed 53% to total revenues.
Revenues from Contract Sales & Medical Solutions (CSMS) totaled $208 million, up 5.1% on a reported as well as constant-currency basis. The segment accounted for 7% of total revenues.
Operating Performance
Adjusted EBITDA was $593 million, up 5.7% year over year. Adjusted EBITDA margin declined to 21.4% from 21.6% in the year-ago quarter.
Operating income was $204 million, up 12.7% from the year-ago quarter. Operating income margin increased to 7.4% from 7% in the year-ago quarter.
Total selling, general and administrative expenses of $395 million were down 7.9% from the year-ago quarter.
Balance Sheet and Cash Flow
IQVIA exited the quarter with cash and cash equivalents balance of $863 million compared with $938 million at the end of the prior quarter. Long-term debt at the end of the quarter was $11.4 billion compared with $11.3 billion at the end of the previous quarter.
The company generated $330 million of cash from operating activities in the reported quarter and CapEx was $149 million. IQVIA repurchased shares worth $313 million during the quarter.
Q4 Guidance
For fourth-quarter 2019, IQVIA projects adjusted earnings per share in the range of $1.65-$1.75. The current Zacks Consensus Estimate is pegged at $1.75.
Revenues are expected between $2.807 billion and $2.857 billion. The current Zacks Consensus Estimate stands at $2.89 billion.
Adjusted EBITDA is anticipated in the range of $635-$649 million.
2019 Guidance
IQVIA updated its guidance for full-year 2019.
The company now projects adjusted earnings between $6.30 and $6.40 per share compared with the previously guided range of $6.25-$6.45. The current Zacks Consensus Estimate of $6.39 lies within the guided range.
Revenues are now expected between $11 billion and $11.05 billion compared with the previously guided range of $11-$11.15 billion. The current Zacks Consensus Estimate of $11.08 billion lies above the guided range.
Adjusted EBITDA is now anticipated in the range of $2,393 - $2,407 million compared with the previously guided range of $2,385 - $2,415 million.
Zacks Rank & Other Stocks to Consider
Currently, IQVIA carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Business Services sector are FleetCor , S&P Global (SPGI - Free Report) and Paychex (PAYX - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings (three to five years) growth rate for FleetCor, S&P Global and Paychex is estimated at 15.6%, 10% and 7%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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