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IQVIA Earnings & Revenues Surpass Estimates in Q3, Increase Y/Y

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IQVIA Holdings Analytics Inc. (IQV - Free Report) has reported impressive third-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

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Adjusted earnings were $2.8 per share, outpacing the Zacks Consensus Estimate by 1.1% and rising 14.1% on a year-over-year basis. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and grew 4.3% from the year-ago quarter.

The IQV stock has gained 20% over the past year, underperforming the 30% rally of the industry it belongs to and 39.8% growth of the Zacks S&P 500 Composite.

One Year Price Performance

 

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IQVIA’s Quarterly Details

The Research and Development segment’s revenues were $2.2 billion, increasing 1.9% from the year-ago quarter and 2% on a constant-currency basis. This metric met our estimate.

Revenues from the Technology and Analytics segment were $1.6 billion, increasing 8.6% from the third quarter of 2023. The metric beat our estimate of $1.5 billion and increased 8.2% on a constant-currency basis.

Contract Sales & Medical Solutions revenues decreased 1.6% on a year-over-year basis to $180 million and increased 1.1% on a constant-currency basis. It missed our expectation of $182.9 million.

Adjusted EBITDA for the third quarter of 2024 was $939 million, indicating a 5.7% rise from the year-ago quarter and outpacing our projection of $938.6 million.

The company exited the quarter with cash and cash equivalents of $1.6 billion compared with $1.5 billion at the end of the preceding quarter. Long-term debt (less current portion) was $12.3 billion compared with $12.1 billion at the end of the second quarter of 2024.

Net cash generated from operating activities was $721 million and the capital expenditure for the quarter was $150 million. The company generated a free cash flow of $571 million in the quarter.

IQV’s 2024 Guidance

For 2024, IQVIA lowered its revenue guidance to $15.35-$15.40 billion from the $15.43-$15.53 billion mentioned in the previous quarter. The Zacks Consensus Estimate of $15.46 billion is higher than IQV’s revised guided range.

The company updated the adjusted EPS guidance to $11.10-$11.20 from the $11.10-$11.30 given in the previous quarter. The mid-point of the guided range is $11.15, lower than the Zacks Consensus Estimate for EPS of $11.17. The company’s adjusted EBITDA view for the same period has been reduced to $3.67-$3.70 billion from the $3.71-$3.77 billion provided in the preceding quarter.

IQV carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot of IQVIA’s Peers

Republic Services, Inc. (RSG - Free Report) reported mixed third-quarter 2024 results.

RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.8 outpaced the Zacks Consensus Estimate by 11.7% and grew 17.5% from the year-ago quarter. Revenues of $4.1 billion missed the consensus mark by a slight margin but increased 6.5% on a year-over-year basis.

TransUnion (TRU - Free Report) posted impressive third-quarter 2024 results.

TRU’s quarterly adjusted earnings (adjusting 69 cents from non-recurring items) of $1 per share surpassed the consensus mark by 2% and increased 14.3% on a year-over-year basis. Total revenues of $1.1 billion outpaced the consensus mark by 2.2% and increased 12% from the year-ago quarter.


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