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IQVIA Holdings Inc. (IQV - Free Report) reported solid third-quarter 2020 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.63 beat the consensus mark by 8% and improved 1.9% on a year-over-year basis. The reported figure was above the guided range of $1.47-$1.55.
Total revenues of $2.79 billion outpaced the consensus estimate by 1.3% and increased 0.6% year over year on a reported basis but were down 0.1% on a constant-currency basis. The reported figure came above the guided range of $2.73-$2.78 billion.
So far this year, shares of IQVIA Holdings have gained 6.2% against 1.7% decline of the industry it belongs to. Meanwhile, the Zacks S&P 500 composite rose 6.5%.
Let’s check out the numbers in detail:
Segmental Revenues
Revenues from Technology & Analytics Solutions totaled $1.21 billion, up 10.2% on a reported basis and 9.2% on a constant-currency basis. The segment accounted for 43% of total revenues.
Research & Development Solutions’ revenues of $1.40 billion decreased 4.5% on a reported basis and 5.1% on a constant-currency basis. The segment contributed 50% to total revenues.
Revenues from Contract Sales & Medical Solutions totaled $179 million, down 13.9% on a reported and 14.4% on a constant-currency basis. The segment accounted for 6% of total revenues.
Operating Performance
Adjusted EBITDA was $604 million, up 1.9% year over year. Adjusted EBITDA margin grew to 21.7% from 21.4% in the year-ago quarter.
Operating income was $187 million, down 8.3% from the year-ago quarter. Operating income margin decreased to 6.7% from 7.4% in the year-ago quarter.
IQVIA Holdings Inc. Price, Consensus and EPS Surprise
IQVIA exited third-quarter 2020 with cash and cash equivalents balance of $1.46 billion compared with $1.11 billion at the end of the prior quarter. Long-term debt was $12.2 billion compared with $11.9 billion at the end of the prior quarter.
The company generated $574 million of cash from operating activities in the reported quarter and CapEx was $157 million.
Share Repurchase
Considering the consistent demand for its offerings, solid liquidity, and strong free cash flow performance, IQVIA reinstated its share-repurchase program, which it had suspended in the wake of the pandemic. As of Sep 30, 2020, the company had nearly $1.0 billion of share-repurchase authorization remaining.
Fourth-Quarter 2020 Guidance
IQVIA expects fourth-quarter revenues in the range of $3.04-$3.19 billion. The current Zacks Consensus Estimate of $3.02 billion lies below the guidance.
Adjusted earnings per share are expected to be between $1.93 and $2.03. The current Zacks Consensus Estimate of $1.95 lies within the guidance.
Adjusted EBITDA is anticipated between $685 million and $710 million.
2020 Guidance
IQVIA raised its full-year guidance.The company now projects adjusted earnings between $6.25 and $6.35 compared with the prior guidance of $6.10 and $6.30 per share. The current Zacks Consensus Estimate of $6.16 lies below the updated guidance.
Revenues are now expected between $11.1-$11.25 billion compared with the prior guidance of $11 billion and $11.1 billion. The current Zacks Consensus Estimate of $11.05 billion lies below the updated guidance.
Adjusted EBITDA is now anticipated between $2,335 million and $2,360 million compared with the prior guided range of $2,295 - $2,345 million.
2021 Guidance
For full-year 2021, IQVIA expects revenues in the range of $12.3-$12.6 billion. The current Zacks Consensus Estimate of $12.18 billion lies below the guidance.
Adjusted earnings per share are expected to be between $7.65 and $7.95. The current Zacks Consensus Estimate of $7.51 lies below the guidance.
Adjusted EBITDA is anticipated between $2.725 billion and $2.800 billion.
Investors interested in the broader Zacks Business Services sector are awaiting third-quarter 2020 earnings of key players like S&P Global (SPGI - Free Report) , Fiserv and Waste Connections (WCN - Free Report) . While S&P Global and Fiserv are slated to release their results on Oct 27, Waste Connections is scheduled to release the same on Oct 28.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
IQVIA (IQV) Beats on Q3 Earnings & Revenues, Ups 2020 View
IQVIA Holdings Inc. (IQV - Free Report) reported solid third-quarter 2020 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $1.63 beat the consensus mark by 8% and improved 1.9% on a year-over-year basis. The reported figure was above the guided range of $1.47-$1.55.
Total revenues of $2.79 billion outpaced the consensus estimate by 1.3% and increased 0.6% year over year on a reported basis but were down 0.1% on a constant-currency basis. The reported figure came above the guided range of $2.73-$2.78 billion.
So far this year, shares of IQVIA Holdings have gained 6.2% against 1.7% decline of the industry it belongs to. Meanwhile, the Zacks S&P 500 composite rose 6.5%.
Let’s check out the numbers in detail:
Segmental Revenues
Revenues from Technology & Analytics Solutions totaled $1.21 billion, up 10.2% on a reported basis and 9.2% on a constant-currency basis. The segment accounted for 43% of total revenues.
Research & Development Solutions’ revenues of $1.40 billion decreased 4.5% on a reported basis and 5.1% on a constant-currency basis. The segment contributed 50% to total revenues.
Revenues from Contract Sales & Medical Solutions totaled $179 million, down 13.9% on a reported and 14.4% on a constant-currency basis. The segment accounted for 6% of total revenues.
Operating Performance
Adjusted EBITDA was $604 million, up 1.9% year over year. Adjusted EBITDA margin grew to 21.7% from 21.4% in the year-ago quarter.
Operating income was $187 million, down 8.3% from the year-ago quarter. Operating income margin decreased to 6.7% from 7.4% in the year-ago quarter.
IQVIA Holdings Inc. Price, Consensus and EPS Surprise
IQVIA Holdings Inc. price-consensus-eps-surprise-chart | IQVIA Holdings Inc. Quote
Balance Sheet and Cash Flow
IQVIA exited third-quarter 2020 with cash and cash equivalents balance of $1.46 billion compared with $1.11 billion at the end of the prior quarter. Long-term debt was $12.2 billion compared with $11.9 billion at the end of the prior quarter.
The company generated $574 million of cash from operating activities in the reported quarter and CapEx was $157 million.
Share Repurchase
Considering the consistent demand for its offerings, solid liquidity, and strong free cash flow performance, IQVIA reinstated its share-repurchase program, which it had suspended in the wake of the pandemic. As of Sep 30, 2020, the company had nearly $1.0 billion of share-repurchase authorization remaining.
Fourth-Quarter 2020 Guidance
IQVIA expects fourth-quarter revenues in the range of $3.04-$3.19 billion. The current Zacks Consensus Estimate of $3.02 billion lies below the guidance.
Adjusted earnings per share are expected to be between $1.93 and $2.03. The current Zacks Consensus Estimate of $1.95 lies within the guidance.
Adjusted EBITDA is anticipated between $685 million and $710 million.
2020 Guidance
IQVIA raised its full-year guidance.The company now projects adjusted earnings between $6.25 and $6.35 compared with the prior guidance of $6.10 and $6.30 per share. The current Zacks Consensus Estimate of $6.16 lies below the updated guidance.
Revenues are now expected between $11.1-$11.25 billion compared with the prior guidance of $11 billion and $11.1 billion. The current Zacks Consensus Estimate of $11.05 billion lies below the updated guidance.
Adjusted EBITDA is now anticipated between $2,335 million and $2,360 million compared with the prior guided range of $2,295 - $2,345 million.
2021 Guidance
For full-year 2021, IQVIA expects revenues in the range of $12.3-$12.6 billion. The current Zacks Consensus Estimate of $12.18 billion lies below the guidance.
Adjusted earnings per share are expected to be between $7.65 and $7.95. The current Zacks Consensus Estimate of $7.51 lies below the guidance.
Adjusted EBITDA is anticipated between $2.725 billion and $2.800 billion.
Currently, IQVIA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Investors interested in the broader Zacks Business Services sector are awaiting third-quarter 2020 earnings of key players like S&P Global (SPGI - Free Report) , Fiserv and Waste Connections (WCN - Free Report) . While S&P Global and Fiserv are slated to release their results on Oct 27, Waste Connections is scheduled to release the same on Oct 28.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>