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IQVIA (IQV) Beats on Q2 Earnings & Revenues, Alters '22 View

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IQVIA Holdings Inc.  (IQV - Free Report) reported solid second-quarter 2022 results, wherein its earnings as well as revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share (excluding $1.10 from non-recurring items) of $2.44 beat the consensus mark by 2.1% and improved 15% on a year-over-year basis. The reported figure is above the guided range of $2.35-$2.42.

Total revenues of $3.54 billion outpaced the consensus estimate by 1.2% and increased 3% year over year on a reported basis and 7.1% on a constant-currency basis. The reported figure lies above the guided range of $3.47-$3.52 billion.

Let’s check out the numbers in detail:

Segmental Revenues

Revenues from Technology & Analytics Solutions totaled $1.41 billion, up 4.1% on a reported basis and 9.4% on a constant-currency basis.

IQVIA Holdings Inc. Price, Consensus and EPS Surprise

IQVIA Holdings Inc. Price, Consensus and EPS Surprise

IQVIA Holdings Inc. price-consensus-eps-surprise-chart | IQVIA Holdings Inc. Quote

Research & Development Solutions’ revenues of $1.95 billion increased 3.1% on a reported basis and 6% on a constant-currency basis.

Revenues from Contract Sales & Medical Solutions totaled $183 million, down 5.7% on a reported basis but up 2.1% on a constant-currency basis.

Operating Performance

Adjusted EBITDA was $800 million, up 10.8% year over year.

Balance Sheet and Cash Flow

IQVIA exited second-quarter 2022 with cash and cash equivalents balance of $1.43 billion compared with $1.39 billion at the end of the prior quarter. Long-term debt (less current portion) was $12.6 billion compared with $12.5 billion at the end of the prior quarter.

IQV generated $329 million of cash from operating activities in the reported quarter, while CapEx was $161 million. Free cash flow was $168 million.

During the reported quarter, IQVIA repurchased shares worth $590 million. As of Jun 30, 2022, IQVIA had $1.53 million of its share buyback authorization outstanding.

Third-Quarter 2022 Guidance

IQVIA expects third-quarter revenues in the range of $3.515-$3.565 billion. The current Zacks Consensus Estimate of $3.61 billion lies above the guidance.

Adjusted earnings per share are expected between $2.34 and $2.42. The Zacks Consensus Estimate of $2.48 lies above the guidance.

Adjusted EBITDA is anticipated between $805 million and $820 million.

2022 Guidance

For 2022, IQVIA’s expectation of low-to-mid teens organic revenue growth at constant currency, excluding COVID-related work, remains unchanged.

IQVIA now expects revenues between $14.40 billion and $14.55 billion compared with the prior guidance of $14.45-$14.75. The current Zacks Consensus Estimate of $14.57 billion lies above the updated guidance.

Adjusted earnings per share are expected between $10.00 and $10.20 (prior guidance: $9.95 and $10.25). The midpoint of the guided range ($10.10) lies below the current Zacks Consensus Estimate of $10.13.

Adjusted EBITDA is anticipated between $3.345 billion and $3.395 billion (prior guidance: from $3.330 billion to $3.405 billion). Currently, IQVIA carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Investors interested in the broader Zacks Business Services sector can consider stocks like Cross Country Healthcare (CCRN - Free Report) , Waste Management (WM - Free Report) and Republic Services (RSG - Free Report) , which will report second-quarter 2022 numbers soon.

Cross Country Healthcare will release results on Aug 3. The stock has an expected earnings growth rate of 55.9% for the current year.

CCRN's shares have gained 89.7% in the past year. Cross Country Healthcare has a long-term earnings growth of 6.9%.

Waste Management will report quarterly numbers on Jul 27. The stock has an expected earnings growth rate of 14.7% for the current year.

WM’s shares have gained 5.4% in the past year. Waste Management has a long-term earnings growth of 10.9%.

Republic Services will report results on Aug 4. The stock has an expected earnings growth rate of 12% for the current year.

RSG’s shares have gained 12.4% in the past year. Republic Services has a long-term earnings growth of 10.5%.
 

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