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IQVIA (IQV) Beats on Q1 Earnings & Revenues, Raises 2021 View

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IQVIA Holdings Inc. (IQV - Free Report) reported solid first-quarter 2021 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share of $2.18 beat the consensus mark by 17.8% and improved 45.3% on a year-over-year basis. The reported figure was above the guided range of $1.81-$1.87.

Total revenues of $3.41 billion outpaced the consensus estimate by 7.5% and increased 23.8% year over year on a reported basis and 21.4% on a constant-currency basis. The reported figure came above the guided range of $3.15-$3.20 billion.

Over the past year, the stock of IQVIA Holdings has gained 71.5% compared with 22.8% growth of the industry  it belongs to and 50.7% rally of the Zacks S&P 500 composite.

Let’s check out the numbers in detail:

Segmental Revenues

Revenues from Technology & Analytics Solutions totaled $1.35 billion, up 20.7% on a reported basis and 17.1% on a constant-currency basis.

Research & Development Solutions’ revenues of $1.87 billion increased 29.6% on a reported basis and 28.1% on a constant-currency basis.

Revenues from Contract Sales & Medical Solutions totaled $193 million, down 1.5% on a reported and 4.1% on a constant-currency basis.

Operating Performance

Adjusted EBITDA was $744 million, up 32.4% year over year. Adjusted EBITDA margin grew to 21.8% from 20.4% in the year-ago quarter.

IQVIA Holdings Inc. Price, Consensus and EPS Surprise

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 first-quarter 2021 with cash and cash equivalents balance of $2.31 billion compared with $1.81 billion at the end of the prior quarter. Long-term debt was $12.1 billion compared with $12.4 billion at the end of the prior quarter.

The company generated $867 million of cash from operating activities in the reported quarter and CapEx was $149 million.

During the reported quarter, IQVIA repurchased shares worth $50 million. As of Mar 31, 2021, the company had nearly $867 million of share-repurchase authorization remaining.

Second-Quarter 2021 Guidance

IQVIA expects second-quarter revenues in the range of $3.23-$3.30 billion. The current Zacks Consensus Estimate of $3.08 billion lies below the guidance.

Adjusted earnings per share are expected to be between $2.00 and $2.10. The current Zacks Consensus Estimate of $1.85 lies below the guidance.

Adjusted EBITDA is anticipated between $690 million and $715 million.

2021 Guidance

For full-year 2021, IQVIA now expects revenues in the range of $13.2-$13.5 billion compared with the prior guidance of $12.55-$12.90 billion. The current Zacks Consensus Estimate of $12.82 billion lies below the updated guidance.

Adjusted earnings per share are expected to be between $8.50 and $8.75 compared with the prior guidance of $7.89-$8.20. The current Zacks Consensus Estimate of $8.06 lies below the updated guidance.

Adjusted EBITDA is anticipated to be between $2.900 billion and $2.965 billion compared with the prior guidance of $2.760-$2.840 billion.

Currently, IQVIA carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and improved on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus estimate by 7.9% and improved 26.6% year over year on a reported basis as well as on a local-currency basis.

Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.

Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.

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