A month has gone by since the last earnings report for IQVIA Holdings (IQV Quick QuoteIQV - Free Report) . Shares have lost about 5.3% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is IQVIA due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

IQVIA Surpasses Q1 Earnings & Revenues Estimates

IQVIA reported solid first-quarter 2022 results, wherein the company’s earnings as well as revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share of $2.47 beat the consensus mark by 1.7% and improved 13.3% on a year-over-year basis. The reported figure exceeded the guided range of $2.40-$2.46. Total revenues of $3.57 billion outpaced the consensus estimate by 0.5% and increased 4.7% year over year on a reported basis and 6.8% on a constant-currency basis. The reported figure lies within the guided range of $3.515-$3.575 billion.

Quarter Details

Revenues from Technology & Analytics Solutions totaled $1.44 billion, up 6.8% on a reported basis and 9.8% on a constant-currency basis. Research & Development Solutions’ revenues of $1.93 billion increased 3.5% on a reported basis and 4.7% on a constant-currency basis. Revenues from Contract Sales & Medical Solutions totaled $195 million, up 1% on a reported basis and 5.7% on a constant-currency basis. Adjusted EBITDA was $812 million, up 9.1% year over year.

Balance Sheet and Cash Flow

IQVIA exited first-quarter 2022 with cash and cash equivalents balance of $1.39 billion compared with $1.37 billion at the end of the prior quarter. Long-term debt was $12.5 billion compared with $12 billion at the end of the prior quarter. The company generated $508 million of cash from operating activities in the reported quarter and CapEx was $177 million. Free cash flow was $331 million. During the reported quarter, IQVIA repurchased shares worth $403 million. As of Mar 31, 2022, the company had nearly $2.12 million of its share-buyback authorization remaining.

Second-Quarter 2022 Guidance

IQVIA expects second-quarter revenues in the range of $3.47-$3.52 billion. Adjusted earnings per share are expected between $2.35 and $2.42. Adjusted EBITDA is anticipated between $790 million and $805 million.

2022 Guidance

For the full year, IQVIA has updated its revenue guidance while reaffirming the same for adjusted earnings per share and adjusted EBITDA. The company now expects revenues between $14.45 billion and $14.75 billion compared with the prior guidance of $14.7-$15 billion. Adjusted earnings per share are expected between $9.95 and $10.25. Adjusted EBITDA is anticipated between $3.330 billion and $3.405 billion.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

VGM Scores

At this time, IQVIA has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, IQVIA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.