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IQVIA (IQV) Surpasses Earnings and Revenue Estimates in Q1
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IQVIA Holdings Inc. (IQV - Free Report) reported solid first-quarter 2019 results wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.53 per share beat the consensus mark by 2 cents and increased 14.2% on a year-over-year basis. Total revenues of $2.68 billion outpaced the consensus estimate by $22 million and increased 4.7% year over year on a reported basis and 7.2% on a constant-currency basis.
Shares of IQVIA have gained 14.1% over the past six months, significantly outperforming the 6.2% rally of the industry it belongs to.
Let’s check out the numbers in detail:
Segmental Revenues
Revenues from Technology & Analytics Solutions (TAS) totaled $1.08 billion, up 9.1% on a reported basis and 12.9% on a constant-currency basis. The segment accounted for 40% of total revenues.
Research & Development Solutions (R&DS) revenues of $1.42 billion increased 3.7% on a reported basis and 5.3% on a constant-currency basis. The segment contributed 53% to total revenues.
Revenues from Contract Sales & Medical Solutions (CSMS) totaled $193 million, down 9.4% on a reported basis and 7% on a constant-currency basis. The segment accounted for 7% of total revenues.
Profitability
Adjusted EBITDA came in at $587 million, up 7.3% year over year. Adjusted EBITDA margin increased to 21.9% from 21.3% in the year-ago quarter.
Balance Sheet and Cash Flow
IQVIA Holdings exited first-quarter 2019 with cash and cash equivalents balance of $936 million compared with $891 million at the end of the prior quarter. Long-term debt at the end of the quarter was $11.2 billion compared with $10.9 billion at the end of the fourth quarter.
The company generated $113 million of cash from operating activities in the reported quarter and spent $141 million on capex.
IQVIA Holdings repurchased $141 million of its shares from certain of its remaining private equity sponsors during the quarter.
Q2 Guidance
For second-quarter 2019, IQVIA projects adjusted earnings in the range of $1.46-$1.51 per share. The current Zacks Consensus Estimate is pegged at $1.49. Revenues are expected between $2,660 million and $2,710 million. The Zacks Consensus Estimate is pegged at $2,710 million. Adjusted EBITDA is anticipated in the range of $575-$590 million.
2019 Guidance
For the full year, the company projects adjusted earnings between $6.20 per share and $6.40 per share. The Zacks Consensus Estimate is pegged at $6.34.Revenues are expected to be between $10,900 million and $11,125 million. The Zacks Consensus Estimate is pegged at $11,020 million. Adjusted EBITDA is anticipated in the range of $2,375-$2,425 million.
Investors interested in the broader Zacks Business Services sector are awaiting first-quarter 2019 earnings reports of key players like Aptiv (APTV - Free Report) , S&P Global (SPGI - Free Report) and CRA International (CRAI - Free Report) . All of them are slated to report on May 2, before market open.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
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IQVIA (IQV) Surpasses Earnings and Revenue Estimates in Q1
IQVIA Holdings Inc. (IQV - Free Report) reported solid first-quarter 2019 results wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.53 per share beat the consensus mark by 2 cents and increased 14.2% on a year-over-year basis. Total revenues of $2.68 billion outpaced the consensus estimate by $22 million and increased 4.7% year over year on a reported basis and 7.2% on a constant-currency basis.
Shares of IQVIA have gained 14.1% over the past six months, significantly outperforming the 6.2% rally of the industry it belongs to.
Let’s check out the numbers in detail:
Segmental Revenues
Revenues from Technology & Analytics Solutions (TAS) totaled $1.08 billion, up 9.1% on a reported basis and 12.9% on a constant-currency basis. The segment accounted for 40% of total revenues.
Research & Development Solutions (R&DS) revenues of $1.42 billion increased 3.7% on a reported basis and 5.3% on a constant-currency basis. The segment contributed 53% to total revenues.
Revenues from Contract Sales & Medical Solutions (CSMS) totaled $193 million, down 9.4% on a reported basis and 7% on a constant-currency basis. The segment accounted for 7% of total revenues.
Profitability
Adjusted EBITDA came in at $587 million, up 7.3% year over year. Adjusted EBITDA margin increased to 21.9% from 21.3% in the year-ago quarter.
Balance Sheet and Cash Flow
IQVIA Holdings exited first-quarter 2019 with cash and cash equivalents balance of $936 million compared with $891 million at the end of the prior quarter. Long-term debt at the end of the quarter was $11.2 billion compared with $10.9 billion at the end of the fourth quarter.
The company generated $113 million of cash from operating activities in the reported quarter and spent $141 million on capex.
IQVIA Holdings repurchased $141 million of its shares from certain of its remaining private equity sponsors during the quarter.
Q2 Guidance
For second-quarter 2019, IQVIA projects adjusted earnings in the range of $1.46-$1.51 per share. The current Zacks Consensus Estimate is pegged at $1.49. Revenues are expected between $2,660 million and $2,710 million. The Zacks Consensus Estimate is pegged at $2,710 million. Adjusted EBITDA is anticipated in the range of $575-$590 million.
2019 Guidance
For the full year, the company projects adjusted earnings between $6.20 per share and $6.40 per share. The Zacks Consensus Estimate is pegged at $6.34.Revenues are expected to be between $10,900 million and $11,125 million. The Zacks Consensus Estimate is pegged at $11,020 million. Adjusted EBITDA is anticipated in the range of $2,375-$2,425 million.
Zacks Rank & Upcoming Releases
Currently, IQVIA carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Investors interested in the broader Zacks Business Services sector are awaiting first-quarter 2019 earnings reports of key players like Aptiv (APTV - Free Report) , S&P Global (SPGI - Free Report) and CRA International (CRAI - Free Report) . All of them are slated to report on May 2, before market open.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>