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IQVIA (IQV) Banking on Global IT Infrastructure, Debt Woe Stays

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IQVIA Holdings Inc.  (IQV - Free Report) is currently banking on its strong healthcare-specific global IT infrastructure and analytics-driven clinical development capabilities.

The company recently reported solid second-quarter 2021 results, with adjusted earnings per share of $2.13 beating the Zacks Consensus Estimate by 2.9% and improving 80.5% on a year-over-year basis. Total revenues of $3.44 billion outpaced the consensus estimate by 5.5% and increased 36.4% year over year.

The stock has gained a massive 62.9% in the past year against 29.5% decline of the industry it belongs to.

 

How is IQVIA Doing?

IQVIA has an enormous treasure trove of healthcare information in the form of around 45 petabytes of proprietary data sourced from around 150,000 data suppliers. The company delivers information and insights on roughly 85% of the world’s pharmaceuticals. IQVIA’s unique ability to standardize, organize and integrate this information through applying sophisticated analytics and global technology infrastructure helps it build a strong client base.

A set of robust capabilities places IQVIA strongly in the life sciences space and positions it to make most of the market opportunities. The company has a strong healthcare-specific global IT infrastructure, analytics-driven clinical development capabilities, a robust real-world solutions ecosystem, and a growing set of proprietary clinical and commercial applications that allow it to grow and retain relationships with healthcare stakeholders. The company’s combined offerings of research and development, and commercial services have been helping it to develop trusted relationships with its clients, resulting in a diversified base of over 10,000 clients in over 100 countries.

IQVIA’s addressable market size is around $260 billion and consists of outsourced research and development, real-world evidence and connected health, and technology-enabled clinical and commercial operations markets. The company aims to expand into and penetrate these markets through innovating new offerings and improving its existing ones using its information resources, advanced analytics, transformative technology and significant domain expertise.

Meanwhile, IQVIA’s cash and cash equivalent balance of $1.81 billion at the end of the second-quarter 2021 was well below the long-term debt level of $12.1 billion, underscoring that the company doesn’t have enough cash to meet this debt burden. The cash level, however, can meet the short-term debt of $147 million.

Zacks Rank and Stocks to Consider

IQVIA currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the broader Zacks Business Services sector are Accenture (ACN - Free Report) , Equifax (EFX - Free Report)  and TransUnion (TRU - Free Report) , each carrying a Zacks Rank #2 (Buy) as well.

The long-term expected earnings per share (three to five years) growth rate for Accenture, Equifax and TransUnion is 10.1%, 15.2% and 22%, respectively.


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IQVIA Holdings Inc. (IQV) - free report >>

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