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IQVIA (IQV) Beats on Q3 Earnings & Revenues, Raises 2021 View

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

Adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. The reported figure exceeded the guided range of $2.06-$2.13. 

Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported basis and 21.1% on constant-currency basis. The reported figure exceeded the guided range of $3.29-$3.365 billion.

So far this year, shares of IQVIA have gained 40.4% against  23.4% decline of the industry it belongs.  The Zacks S&P 500 composite grew 21.5% in the same time frame.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

Let’s check out the numbers in detail:

Segmental Revenues

Revenues from Technology & Analytics Solutions totaled $1.34 billion, up 10.8% on a reported basis and 9.9% on constant-currency basis.

Research & Development Solutions’ revenues of $1.85 billion increased 32.4% on a reported basis and 31.9% on constant-currency basis.

Revenues from Contract Sales & Medical Solutions totaled $201 million, up 12.3% on a reported basis and 12.8% on a constant-currency basis.

Operating Performance

Adjusted EBITDA was $728 million, up 20.5% year over year.

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 third-quarter 2021 with cash and cash equivalents balance of $1.47 billion compared with $1.81 billion at the end of the prior quarter. Long-term debt of $12.1 billion was flat sequentially.

The company generated $844 million of cash from operating activities in the reported quarter and CapEx was $162 million. Free cash flow was $682 million.

During the reported quarter, IQVIA repurchased shares worth $125 million. As of Sep 30, 2021, the company had nearly $697 million of share-buyback authorization remaining.

Fourth-Quarter 2021 Guidance

IQVIA expects fourth-quarter revenues in the range of $3.537-$3.612 billion. The current Zacks Consensus Estimate of $3.47 billion lies below the guidance.

Adjusted earnings per share are expected between $2.37 and $2.47. The Zacks Consensus Estimate of $2.38 lies within the guidance.

Adjusted EBITDA is anticipated between $786 million and $816 million.

2021 Guidance

For the full year, IQVIA now expects revenues in the band of $13.775-$13.850 billion compared with the prior projection of $13.55-$13.70 billion. The current Zacks Consensus Estimate of $13.68 billion is lower than the updated view.

Adjusted earnings per share are expected between $8.85 and $8.95 compared with the prior forecast of $8.70-$8.90. The current Zacks Consensus Estimate of $8.84 falls short of the revised outlook.

Adjusted EBITDA is anticipated between $2.98 billion and $3.01 billion compared with the prior prediction of $2.95-$3 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 2021 earnings reports of key players like Fiserv (FISV - Free Report) , Automatic Data Processing (ADP - Free Report) and Republic Services (RSG - Free Report) . While Fiserv and Automatic Data Processing are slated to report the same on Oct 27, Republic Services is scheduled to release the result on Oct 28.