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IQVIA Holdings Inc. (IQV - Free Report) reported solid first-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.45 beat the Zacks Consensus Estimate of $2.41 but declined on a year-over-year basis. Total revenues of $3,652 million outpaced the Zacks Consensus Estimate of $3,608.2 million and increased 2.4% year over year on a reported basis and 4.7% on a constant-currency basis.
IQVIA Holdings Inc. Price, Consensus and EPS Surprise
Revenues from Technology & Analytics Solutions totaled $1,444 million, up 0.3% on a reported basis and 2.9% on a constant-currency basis.
Research & Development Solutions’ revenues of $2,026 million increased 4.8% on a reported basis and 6.5% on a constant-currency basis.
Revenues from Contract Sales & Medical Solutions totaled $182 million, down 6.7% on a reported basis and 1% on a constant-currency basis.
Operating Performance
Adjusted EBITDA was $851 million, up 4.8% year over year.
Balance Sheet and Cash Flow
IQVIA exited first-quarter 2023 with cash and cash equivalents of $1,494 million compared with $1,216 million at the end of the prior quarter. Long-term debt (less current portion) was $11,833 million compared with $12,595 million at the end of the prior quarter.
IQV generated $417 million of cash from operating activities in the reported quarter, while capital expenditure was $164 million. Free cash flow was $253 million.
In the first quarter of 2023, IQV repurchased shares worth $129 million. As of Mar 31, 2023, IQVIA had $1,226 million of share repurchase authorization available.
2023 Guidance
IQVIA expects revenues between $15.15 billion and $15.40 billion (representing growth of 5.1-6.9% on a reported basis and 4.7-6.5% at constant currency). Adjusted earnings per share are expected between $10.26 and $10.56 (up 1-3.9%). Adjusted EBITDA is anticipated between $3.625 billion and $3.695 billion.
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) were $1.43, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom(OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
ManpowerGroup(MAN - Free Report) reported lower-than-expected first-quarter 2023 results. First-quarter adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but met our estimate. The bottom line declined 14.4% year over year, impacted by restructuring costs and foreign currency fluctuations. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year on a reported basis. Revenues decreased 2.2% on a constant-currency basis.
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IQVIA Holdings (IQV) Surpasses Q1 Earnings & Revenue Estimates
IQVIA Holdings Inc. (IQV - Free Report) reported solid first-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.45 beat the Zacks Consensus Estimate of $2.41 but declined on a year-over-year basis. Total revenues of $3,652 million outpaced the Zacks Consensus Estimate of $3,608.2 million and increased 2.4% year over year 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-eps-surprise-chart | IQVIA Holdings Inc. Quote
Segmental Revenues
Revenues from Technology & Analytics Solutions totaled $1,444 million, up 0.3% on a reported basis and 2.9% on a constant-currency basis.
Research & Development Solutions’ revenues of $2,026 million increased 4.8% on a reported basis and 6.5% on a constant-currency basis.
Revenues from Contract Sales & Medical Solutions totaled $182 million, down 6.7% on a reported basis and 1% on a constant-currency basis.
Operating Performance
Adjusted EBITDA was $851 million, up 4.8% year over year.
Balance Sheet and Cash Flow
IQVIA exited first-quarter 2023 with cash and cash equivalents of $1,494 million compared with $1,216 million at the end of the prior quarter. Long-term debt (less current portion) was $11,833 million compared with $12,595 million at the end of the prior quarter.
IQV generated $417 million of cash from operating activities in the reported quarter, while capital expenditure was $164 million. Free cash flow was $253 million.
In the first quarter of 2023, IQV repurchased shares worth $129 million. As of Mar 31, 2023, IQVIA had $1,226 million of share repurchase authorization available.
2023 Guidance
IQVIA expects revenues between $15.15 billion and $15.40 billion (representing growth of 5.1-6.9% on a reported basis and 4.7-6.5% at constant currency). Adjusted earnings per share are expected between $10.26 and $10.56 (up 1-3.9%). Adjusted EBITDA is anticipated between $3.625 billion and $3.695 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.
Earnings Snapshot
Equifax (EFX - Free Report) reported better-than-expected first-quarter 2023 results. Adjusted earnings (excluding 52 cents from non-recurring items) were $1.43, beating the Zacks Consensus Estimate by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% on a reported basis from the year-ago figure. The top line was down 3% on a local currency basis.
Omnicom(OMC - Free Report) reported better-than-expected first-quarter 2023 results. OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. Earnings per share increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
ManpowerGroup(MAN - Free Report) reported lower-than-expected first-quarter 2023 results. First-quarter adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but met our estimate. The bottom line declined 14.4% year over year, impacted by restructuring costs and foreign currency fluctuations. Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year on a reported basis. Revenues decreased 2.2% on a constant-currency basis.