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Why Is IQVIA (IQV) Down 5.1% Since Last Earnings Report?
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It has been about a month since the last earnings report for IQVIA Holdings (IQV - Free Report) . Shares have lost about 5.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is IQVIA due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
IQVIA Surpasses Q4 Earnings & Revenues Estimates
IQVIA Holdings reported solid fourth-quarter 2021 results, wherein the company’s earnings as well as revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.55 beat the consensus mark by 4.9% and improved 20.9% on a year-over-year basis. The reported figure exceeded the guided range of $2.37-$2.47.
Total revenues of $3.64 billion outpaced the consensus estimate by 1.2% and increased 10.2% year over year on a reported basis and 11.6% on constant-currency basis. The reported figure exceeded the guided range of $3.537-$3.612 billion.
Segmental Revenues
Revenues from Technology & Analytics Solutions totaled $1.49 billion, up 5% on a reported basis and 6.6% on a constant-currency basis.
Research & Development Solutions’ revenues of $1.94 billion increased 15.4% on a reported basis and 16.3% on a constant-currency basis.
Revenues from Contract Sales & Medical Solutions totaled $196 million, up 3.7% on a reported basis and 7.4% on a constant-currency basis.
Operating Performance
Adjusted EBITDA was $828 million, up 12.7% year over year.
Balance Sheet and Cash Flow
IQVIA exited fourth-quarter 2021 with cash and cash equivalents balance of $1.37 billion compared with $1.47 billion at the end of the prior quarter. Long-term debt was $12 billion compared with $12.1 billion at the end of the prior quarter.
The company generated $692 million of cash from operating activities in the reported quarter and CapEx was $184 million. Free cash flow was $508 million.
During the reported quarter, IQVIA repurchased shares worth $174 million. As of Dec 31, 2021, the company had nearly $523 million of its share-buyback authorization remaining.
On Feb 10, 2022, the company’s board announced an additional $2.0-billion share repurchase authorization, thereby bringing the remaining authorization to more than $2.5 billion.
First-Quarter 2022 Guidance
IQVIA expects first-quarter revenues in the range of $3.515-$3.575 billion. Adjusted earnings per share are expected between $2.40 and $2.46. Adjusted EBITDA is anticipated between $800 million and $815 million.
2022 Guidance
For the full year, IQVIA expects revenues in the band of $14.7-$15 billion. Adjusted earnings per share are expected between $9.95 and $10.25. Adjusted EBITDA is anticipated between $3.330 billion and $3.405 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, IQVIA has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, IQVIA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is IQVIA (IQV) Down 5.1% Since Last Earnings Report?
It has been about a month since the last earnings report for IQVIA Holdings (IQV - Free Report) . Shares have lost about 5.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is IQVIA due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
IQVIA Surpasses Q4 Earnings & Revenues Estimates
IQVIA Holdings reported solid fourth-quarter 2021 results, wherein the company’s earnings as well as revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.55 beat the consensus mark by 4.9% and improved 20.9% on a year-over-year basis. The reported figure exceeded the guided range of $2.37-$2.47.
Total revenues of $3.64 billion outpaced the consensus estimate by 1.2% and increased 10.2% year over year on a reported basis and 11.6% on constant-currency basis. The reported figure exceeded the guided range of $3.537-$3.612 billion.
Segmental Revenues
Revenues from Technology & Analytics Solutions totaled $1.49 billion, up 5% on a reported basis and 6.6% on a constant-currency basis.
Research & Development Solutions’ revenues of $1.94 billion increased 15.4% on a reported basis and 16.3% on a constant-currency basis.
Revenues from Contract Sales & Medical Solutions totaled $196 million, up 3.7% on a reported basis and 7.4% on a constant-currency basis.
Operating Performance
Adjusted EBITDA was $828 million, up 12.7% year over year.
Balance Sheet and Cash Flow
IQVIA exited fourth-quarter 2021 with cash and cash equivalents balance of $1.37 billion compared with $1.47 billion at the end of the prior quarter. Long-term debt was $12 billion compared with $12.1 billion at the end of the prior quarter.
The company generated $692 million of cash from operating activities in the reported quarter and CapEx was $184 million. Free cash flow was $508 million.
During the reported quarter, IQVIA repurchased shares worth $174 million. As of Dec 31, 2021, the company had nearly $523 million of its share-buyback authorization remaining.
On Feb 10, 2022, the company’s board announced an additional $2.0-billion share repurchase authorization, thereby bringing the remaining authorization to more than $2.5 billion.
First-Quarter 2022 Guidance
IQVIA expects first-quarter revenues in the range of $3.515-$3.575 billion. Adjusted earnings per share are expected between $2.40 and $2.46. Adjusted EBITDA is anticipated between $800 million and $815 million.
2022 Guidance
For the full year, IQVIA expects revenues in the band of $14.7-$15 billion. Adjusted earnings per share are expected between $9.95 and $10.25. Adjusted EBITDA is anticipated between $3.330 billion and $3.405 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
VGM Scores
Currently, IQVIA has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions looks promising. Notably, IQVIA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.