Have you looked into how IQVIA Holdings (IQV Quick QuoteIQV - Free Report) performed internationally during the quarter ending September 2024? Considering the widespread global presence of this clinical testing company, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.

The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success and growth path. It has become essential for investors to comprehend how much a company relies on these foreign markets, as this understanding reveals the firm's potential for consistent earnings, its capacity to harness different economic cycles, and its overall growth prospects.

Being present in international markets serves as a counterbalance to domestic economic challenges while offering chances to engage with more rapidly evolving economies. However, this kind of diversification introduces challenges like currency fluctuations, geopolitical uncertainties and varying market trends.

Upon examining IQV's recent quarterly performance, we noticed several interesting patterns in the revenue generated from its international segments, which are commonly analyzed and observed by Wall Street experts.

The company's total revenue for the quarter stood at $3.9 billion, increasing 4.3% year over year. Now, let's delve into IQV's international revenue breakdown to gain insights into the significance of its operations beyond home turf.

Trends in IQV's Revenue from International Markets

Of the total revenue, $1.29 billion came from Europe and Africa during the last fiscal quarter, accounting for 33.03%. This represented a surprise of +10.32% as analysts had expected the region to contribute $1.17 billion to the total revenue. In comparison, the region contributed $1.18 billion, or 30.89%, and $1.09 billion, or 29.15%, to total revenue in the previous and year-ago quarters, respectively.

Asia-Pacific accounted for 19.79% of the company's total revenue during the quarter, translating to $771 million. Revenues from this region represented a surprise of +1.66%, with Wall Street analysts collectively expecting $758.39 million. When compared to the preceding quarter and the same quarter in the previous year, Asia-Pacific contributed $773 million (20.27%) and $791 million (21.17%) to the total revenue, respectively.

Revenue Projections for Overseas Markets

Wall Street analysts expect IQVIA to report $3.97 billion in total revenue for the current fiscal quarter, indicating an increase of 2.7% from the year-ago quarter. Europe and Africa and Asia-Pacific are expected to contribute 31.1% ($1.23 billion) and 19.6% ($779.5 million) to the total revenue, respectively.

For the full year, the company is expected to generate $15.46 billion in total revenue, up 3.2% from the previous year. Revenues from Europe and Africa and Asia-Pacific are expected to constitute 30.6% ($4.74 billion) and 20% ($3.09 billion) of the total, respectively.

The Bottom Line

IQVIA's reliance on international markets for revenues offers both opportunities and risks. Hence, keeping an eye on its international revenue trends could significantly help forecast the company's prospects.

With the increasing intricacies of global interdependence and geopolitical strife, Wall Street analysts meticulously observe these patterns, especially for companies with an international footprint, to tweak their forecasts of earnings. Importantly, several additional factors, such as a company's domestic market status, also impact these earnings forecasts.

Emphasizing a company's shifting earnings prospects is a key aspect of our approach at Zacks, especially since research has proven its substantial influence on a stock's price in the short run. This correlation is positively aligned, meaning that improved earnings projections tend to boost the stock's price.

Our proprietary stock rating tool, the Zacks Rank, with its externally validated exceptional track record, harnesses the power of earnings estimate revisions to serve as a dependable measure for anticipating the short-term price trends of stocks.

IQVIA, bearing a Zacks Rank #3 (Hold), is expected to mirror the broader market's movements in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

A Look at IQVIA's Recent Stock Price Performance

The stock has declined by 9% over the past month compared to the 0.4% rise of the Zacks S&P 500 composite. Meanwhile, the Zacks Medical sector, which includes IQVIA, has decreased 3.5% during this time frame. Over the past three months, the company's shares have experienced a loss of 11.9% relative to the S&P 500's 5.5% increase. Throughout this period, the sector overall has witnessed a 4.1% decrease.