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IQVIA (IQV) Surpasses Earnings & Revenue Estimates in Q1
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IQVIA Holdings Analytics Inc. (IQV - Free Report) has reported impressive first-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings (excluding 98 cents from non-recurring items) were $2.5 per share, beating the Zacks Consensus Estimate by 2.8% and increasing 3.7% from the year-ago reported figure. Total revenues of $3.7 billion surpassed the consensus estimate by 1.2% and grew 2.3% from the year-ago quarter.
The IQV stock has gained 25.5% over the past year, outperforming the 3.4% rally of the industry it belongs to and the 22.8% rally of the Zacks S&P 500 Composite.
Revenues from the Technology and Analytics segment were $1.5 billion, up marginally from the first-quarter 2023 reported figure. The reported figure met our estimate. This segment’s revenues increased 1% on a constant-currency basis.
The Research and Development segment’s revenues were $2.1 billion, up 3.4% from the year-ago quarter and 3.8% on a constant-currency basis. The figure surpassed our estimate of $2 billion.
Contract Sales & Medical Solutions revenues increased 3.8% on a year-over-year basis to $189 million and grew 7.1% on a constant-currency basis. It beat our estimate of $178.2 million.
Adjusted EBITDA for first-quarter 2024 was $862 million, marking 1.3% growth from the year-ago quarter and surpassing our estimate of $854.4 million.
The company exited the quarter with cash and cash equivalents of $1.4 billion, flat with the end of the previous quarter. Long-term debt (less current portion) is $12.8 billion compared with $13 billion held at the end of the preceding quarter.
Net cash generated from operating activities was $522 million and capital expenditure for the quarter was $145 million. The free cash flow generated during the quarter amounted to $377 million.
2024 Guidance
For 2024, IQV anticipates revenues of $15.33-$15.58 billion compared with $15.4 billion to $15.65 billion mentioned previously. The mid-point ($15.45 billion) of the revised guided range is lower than the Zacks Consensus Estimate of $15.51 billion.
The company expects adjusted EPS of $10.95-$11.25. The mid-point ($11.1) of the revised guided range is higher than the Zacks Consensus Estimate of $11.09. The expected adjusted EBITDA for the same period is projected to be $3.7-$3.8 billion.
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive third-quarter fiscal 2024 results.
ADP’s earnings per share of $2.9 beat the consensus estimate by 4.4% and increased 14.3% from the year-ago quarter. Total revenues of $5.3 billion beat the consensus estimate by a slight margin and grew 6.6% from the year-ago quarter on a reported basis and 6% on an organic constant-currency basis.
FI’s adjusted earnings per share (excluding 65 cents from non-recurring items) of $1.9 beat the consensus mark by 6.2% and increased 19% year over year. Adjusted revenues of $4.5 billion missed the consensus estimate by a slight margin and decreased slightly on a year-over-year basis.
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IQVIA (IQV) Surpasses Earnings & Revenue Estimates in Q1
IQVIA Holdings Analytics Inc. (IQV - Free Report) has reported impressive first-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.
Adjusted earnings (excluding 98 cents from non-recurring items) were $2.5 per share, beating the Zacks Consensus Estimate by 2.8% and increasing 3.7% from the year-ago reported figure. Total revenues of $3.7 billion surpassed the consensus estimate by 1.2% and grew 2.3% from the year-ago quarter.
The IQV stock has gained 25.5% over the past year, outperforming the 3.4% rally of the industry it belongs to and the 22.8% rally of the Zacks S&P 500 Composite.
IQVIA Holdings Inc. Price and EPS Surprise
IQVIA Holdings Inc. price-eps-surprise | IQVIA Holdings Inc. Quote
Quarterly Details
Revenues from the Technology and Analytics segment were $1.5 billion, up marginally from the first-quarter 2023 reported figure. The reported figure met our estimate. This segment’s revenues increased 1% on a constant-currency basis.
The Research and Development segment’s revenues were $2.1 billion, up 3.4% from the year-ago quarter and 3.8% on a constant-currency basis. The figure surpassed our estimate of $2 billion.
Contract Sales & Medical Solutions revenues increased 3.8% on a year-over-year basis to $189 million and grew 7.1% on a constant-currency basis. It beat our estimate of $178.2 million.
Adjusted EBITDA for first-quarter 2024 was $862 million, marking 1.3% growth from the year-ago quarter and surpassing our estimate of $854.4 million.
The company exited the quarter with cash and cash equivalents of $1.4 billion, flat with the end of the previous quarter. Long-term debt (less current portion) is $12.8 billion compared with $13 billion held at the end of the preceding quarter.
Net cash generated from operating activities was $522 million and capital expenditure for the quarter was $145 million. The free cash flow generated during the quarter amounted to $377 million.
2024 Guidance
For 2024, IQV anticipates revenues of $15.33-$15.58 billion compared with $15.4 billion to $15.65 billion mentioned previously. The mid-point ($15.45 billion) of the revised guided range is lower than the Zacks Consensus Estimate of $15.51 billion.
The company expects adjusted EPS of $10.95-$11.25. The mid-point ($11.1) of the revised guided range is higher than the Zacks Consensus Estimate of $11.09. The expected adjusted EBITDA for the same period is projected to be $3.7-$3.8 billion.
Currently, IQV carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Automatic Data Processing, Inc. (ADP - Free Report) reported impressive third-quarter fiscal 2024 results.
ADP’s earnings per share of $2.9 beat the consensus estimate by 4.4% and increased 14.3% from the year-ago quarter. Total revenues of $5.3 billion beat the consensus estimate by a slight margin and grew 6.6% from the year-ago quarter on a reported basis and 6% on an organic constant-currency basis.
Fiserv, Inc. (FI - Free Report) reported mixed first-quarter 2024 results.
FI’s adjusted earnings per share (excluding 65 cents from non-recurring items) of $1.9 beat the consensus mark by 6.2% and increased 19% year over year. Adjusted revenues of $4.5 billion missed the consensus estimate by a slight margin and decreased slightly on a year-over-year basis.