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IQVIA (IQV) Q3 Earnings and Revenues Beat Mark, Rise Y/Y
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IQVIA Holdings Inc. (IQV - Free Report) reported solid third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings per share (excluding 99 cents from non-recurring items) of $2.48 beat the consensus mark by 3.8% and improved 14.3% on a year-over-year basis. The reported figure is above the guided range of $2.34-$2.42.
Total revenues of $3.56 billion outpaced the consensus estimate by 0.5% and increased 5% year over year on a reported basis and 10.5% on a constant-currency basis. The reported figure touches the upper end of the guided range of $3.515-$3.565 billion.
IQVIA Holdings Inc. Price, Consensus and EPS Surprise
Revenues from Technology & Analytics Solutions totaled $1.4 billion, up 4.7% on a reported basis and 11.6% on a constant-currency basis.
Research & Development Solutions’ revenues of $1.98 billion increased 6.8% on a reported basis and 10.7% on a constant-currency basis.
Revenues from Contract Sales & Medical Solutions totaled $183 million, down 9% on a reported basis but up 1% on a constant-currency basis.
Operating Performance
Adjusted EBITDA was $814 million, up 11.8% year over year.
Balance Sheet and Cash Flow
IQVIA exited third-quarter 2022 with a cash and cash equivalents balance of $1.27 billion compared with $1.43 billion at the end of the prior quarter. Long-term debt (less current portion) was $12.24 billion compared with $12.6 billion at the end of the prior quarter.
IQV generated $863 million of cash from operating activities in the reported quarter, while CapEx was $165 million. Free cash flow was $698 million.
During the reported quarter, IQVIA repurchased shares worth $150 million. As of Sep 30, 2022, IQVIA had $1.38 million of its share buyback authorization outstanding.
Fourth-Quarter 2022 Guidance
IQVIA expects fourth-quarter revenues in the range of $3.654-$3.754 billion. The current Zacks Consensus Estimate of $3.83 billion lies above the guided range.
Adjusted earnings per share are expected between $2.72 and $2.82. The Zacks Consensus Estimate is pegged at $2.82 (meeting the upper end of the expected range).
Adjusted EBITDA is anticipated between $904 million and $934 million.
2022 Guidance
For 2022, IQVIA’s expectation of low-to-mid-teens organic revenue growth at constant currency, excluding COVID-related work, remains unchanged.
IQVIA now expects revenues between $14.33 billion and $14.43 billion compared with the prior guidance of $14.40-$14.55. The current Zacks Consensus Estimate of $14.48 billion lies above the updated guidance.
Adjusted earnings per share are expected between $10.10 and $10.20 (prior guidance: $10.00 and $10.20). The current Zacks Consensus Estimate is pegged at $10.10.
Adjusted EBITDA is anticipated between $3.33 billion and $3.36 billion (prior guidance: from $3.345 billion to $3.395 billion).
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimates.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line was constant on a year-over-year basis. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.
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IQVIA (IQV) Q3 Earnings and Revenues Beat Mark, Rise Y/Y
IQVIA Holdings Inc. (IQV - Free Report) reported solid third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Adjusted earnings per share (excluding 99 cents from non-recurring items) of $2.48 beat the consensus mark by 3.8% and improved 14.3% on a year-over-year basis. The reported figure is above the guided range of $2.34-$2.42.
Total revenues of $3.56 billion outpaced the consensus estimate by 0.5% and increased 5% year over year on a reported basis and 10.5% on a constant-currency basis. The reported figure touches the upper end of the guided range of $3.515-$3.565 billion.
IQVIA Holdings Inc. Price, Consensus and EPS Surprise
IQVIA Holdings Inc. price-consensus-eps-surprise-chart | IQVIA Holdings Inc. Quote
Let’s check out the numbers in detail:
Segmental Revenues
Revenues from Technology & Analytics Solutions totaled $1.4 billion, up 4.7% on a reported basis and 11.6% on a constant-currency basis.
Research & Development Solutions’ revenues of $1.98 billion increased 6.8% on a reported basis and 10.7% on a constant-currency basis.
Revenues from Contract Sales & Medical Solutions totaled $183 million, down 9% on a reported basis but up 1% on a constant-currency basis.
Operating Performance
Adjusted EBITDA was $814 million, up 11.8% year over year.
Balance Sheet and Cash Flow
IQVIA exited third-quarter 2022 with a cash and cash equivalents balance of $1.27 billion compared with $1.43 billion at the end of the prior quarter. Long-term debt (less current portion) was $12.24 billion compared with $12.6 billion at the end of the prior quarter.
IQV generated $863 million of cash from operating activities in the reported quarter, while CapEx was $165 million. Free cash flow was $698 million.
During the reported quarter, IQVIA repurchased shares worth $150 million. As of Sep 30, 2022, IQVIA had $1.38 million of its share buyback authorization outstanding.
Fourth-Quarter 2022 Guidance
IQVIA expects fourth-quarter revenues in the range of $3.654-$3.754 billion. The current Zacks Consensus Estimate of $3.83 billion lies above the guided range.
Adjusted earnings per share are expected between $2.72 and $2.82. The Zacks Consensus Estimate is pegged at $2.82 (meeting the upper end of the expected range).
Adjusted EBITDA is anticipated between $904 million and $934 million.
2022 Guidance
For 2022, IQVIA’s expectation of low-to-mid-teens organic revenue growth at constant currency, excluding COVID-related work, remains unchanged.
IQVIA now expects revenues between $14.33 billion and $14.43 billion compared with the prior guidance of $14.40-$14.55. The current Zacks Consensus Estimate of $14.48 billion lies above the updated guidance.
Adjusted earnings per share are expected between $10.10 and $10.20 (prior guidance: $10.00 and $10.20). The current Zacks Consensus Estimate is pegged at $10.10.
Adjusted EBITDA is anticipated between $3.33 billion and $3.36 billion (prior guidance: from $3.345 billion to $3.395 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.
Recent Releases
Omnicom Group Inc. (OMC - Free Report) reported impressive third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.
Earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year, driven by a strong margin performance. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
Equifax Inc. (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimates.
Adjusted earnings (excluding 39 cents from non-recurring items) of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. However, revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year on a reported basis and 4% on a local-currency basis.
The Interpublic Group of Companies, Inc. (IPG - Free Report) reported better-than-expected third-quarter 2022 results.
Adjusted earnings (excluding a penny from non-recurring items) of 63 cents per share beat the Zacks Consensus Estimate by 6.8%. The bottom line was constant on a year-over-year basis. Net revenues of $2.3 billion beat the consensus estimate by 0.3% but declined 9.7% on a year-over-year basis. Total revenues of $2.64 billion increased 3.8% year over year.