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IQVIA (IQV) Q4 Earnings and Revenues Beat Mark, Rise Y/Y

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IQVIA Holdings Inc. (IQV - Free Report) reported solid fourth-quarter 2022 results, wherein both earnings and revenues surpassed the respective Zacks Consensus Estimate.

Adjusted earnings per share (excluding $1.58 from non-recurring items) of $2.78 beat the Zacks Consensus Estimate by 1.1% and improved 9% on a year-over-year basis. The reported figure was within the guided range of $2.72-$2.82 per share.

Total revenues of $3.74 billion outpaced the Zacks Consensus Estimate by 0.9% and increased 2.8% year over year on a reported basis and 7% on a constant-currency basis. The reported figure fell within the guided range of $3.654-$3.754 billion.

Segmental Revenues

Revenues from Technology & Analytics Solutions totaled $1.5 billion, up 0.2% on a reported basis and 4.7% on a constant-currency basis.

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

 

Research & Development Solutions’ revenues of $2.1 billion increased 5.9% on a reported basis and 9.3% on a constant-currency basis.

Revenues from Contract Sales & Medical Solutions totaled $182 million, down 7.1% on a reported basis but up 2% on a constant-currency basis.

Operating Performance

Adjusted EBITDA was $920 million, up 11.1% year over year.

Balance Sheet and Cash Flow

IQVIA exited fourth-quarter 2022 with cash and cash equivalents of $1.22 billion compared with $1.27 billion at the end of the prior quarter. Long-term debt (less current portion) was $12.6 billion compared with $12.24 billion at the end of the prior quarter.

IQV generated $560 million of cash from operating activities in the reported quarter, while CapEx was $171 million. Free cash flow was $389 million.

The company repurchased shares worth $25 million in fourth-quarter 2022. As of Dec 31, 2022, IQVIA had $1.35 million of its share buyback authorization outstanding.

2023 Guidance

IQVIA now expects revenues between $15.15 billion and $15.40 billion (representing growth of 5.1-6.9% on a reported basis and 5-6.8% at constant currency). The current Zacks Consensus Estimate of $14.38 billion lies below the updated guidance.

Adjusted earnings per share are expected between $10.26 and $10.56 (up 1-3.9%). The current Zacks Consensus Estimate is pegged at $10.14, lies below the updated guidance.

Adjusted EBITDA is anticipated between $3.625 billion and $3.695 billion.

Currently, IQVIA carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshots

Robert Half International Inc. (RHI - Free Report) reported mixed fourth-quarter 2022 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed.

Quarterly earnings of $1.37 per share beat the Zacks Consensus Estimate by 1.5% but declined 9.3% year over year. Revenues of $1.73 billion missed the Zacks Consensus Estimate by 0.6% and decreased 2.4% year over year.

Automatic Data Processing, Inc. (ADP - Free Report) reported better-than-expected second-quarter fiscal 2023 results.

Adjusted earnings per share of $1.96 beat the Zacks Consensus Estimate by 0.5% and grew 19% from the year-ago fiscal quarter’s reading. Total revenues of $4.4 billion beat the Zacks Consensus Estimate by 0.3% and improved 9.1% from the year-ago fiscal quarter’s reading on a reported basis and 10% on an organic constant-currency basis.

Booz Allen Hamilton Holding Corp. (BAH - Free Report) reported impressive third-quarter fiscal 2023 results, with both earnings and revenues beating the respective Zacks Consensus Estimate. Quarterly adjusted earnings (excluding 84 cents from non-recurring items) per share of $1.07 beat the Zacks Consensus Estimate by 4.9% and increased 4.9% on a year-over-year basis.

Total revenues of $2.3 billion beat the Zacks Consensus Estimate by 4% and increased 12.1% on a year-over-year basis.

 

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