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IQVIA (IQV) Surpasses Earnings & Revenue Estimates in Q2
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IQVIA Holdings Analytics Inc. (IQV - Free Report) has reported impressive second-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings (excluding 67 cents from non-recurring items) were $2.6 per share, outpacing the Zacks Consensus Estimate by 2.3% and increasing 2.4% on a year-over-year basis. Total revenues of $3.8 billion surpassed the consensus estimate marginally and rose 2.3% from the year-ago quarter.
The IQV stock has gained 5.2% over the past six months, outperforming the 2.9% rally of the industry it belongs to.
Revenues from the Technology and Analytics segment were $1.5 billion, increasing 2.7% from second-quarter 2023. The metric met our estimate and increased 3.8% on a constant-currency basis.
The Research and Development segment’s revenues were $2.2 billion, increasing 2.4% from the year-ago quarter and 3.3% on a constant-currency basis. The figure surpassed our estimate of $2.1 billion.
Contract Sales & Medical Solutions revenues declined 2.3% on a year-over-year basis to $172 million and increased 2.8% on a constant-currency basis. It missed our estimate of $177 million.
Adjusted EBITDA for the second quarter of 2024 was $887 million, indicating 12.7% growth from the year-ago quarter and outpacing our expectation of $874.6 million.
The company exited the quarter with cash and cash equivalents of $1.5 billion compared with $1.4 billion at the end of the preceding quarter. Long-term debt (less current portion) was $12.1 billion compared with $12.8 billion at the end of the first quarter of 2024.
Net cash generated from operating activities was $588 million and the capital expenditure for the quarter was $143 million. The company generated a free cash flow of $445 million in the quarter.
2024 Guidance
For 2024, IQV updated its revenue guidance to $15.43-$15.53 billion compared with $15.33-$15.58 billion mentioned previously. The mid-point ($15.48 billion) of the revised guided range is higher than the Zacks Consensus Estimate of $15.44 billion.
The company raised the adjusted EPS guidance to $11.10-$11.30 compared with $10.95-$11.25 mentioned previously. The Zacks Consensus Estimate is pegged at $11.07, which is lower than IQVIA’s guided range. The updated guided range for adjusted EBITDA for the same period is anticipated to be $3.71-$3.77 compared with $3.70-$3.80 billion mentioned previously.
OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and grew 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% on a year-over-year basis.
MAN’s quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year, mainly due to a run-off Proservia Germany business and Argentina-related currency translation losses. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year on a reported basis and 3% on a constant-currency basis.
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IQVIA (IQV) Surpasses Earnings & Revenue Estimates in Q2
IQVIA Holdings Analytics Inc. (IQV - Free Report) has reported impressive second-quarter 2024 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings (excluding 67 cents from non-recurring items) were $2.6 per share, outpacing the Zacks Consensus Estimate by 2.3% and increasing 2.4% on a year-over-year basis. Total revenues of $3.8 billion surpassed the consensus estimate marginally and rose 2.3% from the year-ago quarter.
The IQV stock has gained 5.2% over the past six months, outperforming the 2.9% rally of the industry it belongs to.
IQVIA Holdings Inc. Price and EPS Surprise
IQVIA Holdings Inc. price-eps-surprise | IQVIA Holdings Inc. Quote
Quarterly Details
Revenues from the Technology and Analytics segment were $1.5 billion, increasing 2.7% from second-quarter 2023. The metric met our estimate and increased 3.8% on a constant-currency basis.
The Research and Development segment’s revenues were $2.2 billion, increasing 2.4% from the year-ago quarter and 3.3% on a constant-currency basis. The figure surpassed our estimate of $2.1 billion.
Contract Sales & Medical Solutions revenues declined 2.3% on a year-over-year basis to $172 million and increased 2.8% on a constant-currency basis. It missed our estimate of $177 million.
Adjusted EBITDA for the second quarter of 2024 was $887 million, indicating 12.7% growth from the year-ago quarter and outpacing our expectation of $874.6 million.
The company exited the quarter with cash and cash equivalents of $1.5 billion compared with $1.4 billion at the end of the preceding quarter. Long-term debt (less current portion) was $12.1 billion compared with $12.8 billion at the end of the first quarter of 2024.
Net cash generated from operating activities was $588 million and the capital expenditure for the quarter was $143 million. The company generated a free cash flow of $445 million in the quarter.
2024 Guidance
For 2024, IQV updated its revenue guidance to $15.43-$15.53 billion compared with $15.33-$15.58 billion mentioned previously. The mid-point ($15.48 billion) of the revised guided range is higher than the Zacks Consensus Estimate of $15.44 billion.
The company raised the adjusted EPS guidance to $11.10-$11.30 compared with $10.95-$11.25 mentioned previously. The Zacks Consensus Estimate is pegged at $11.07, which is lower than IQVIA’s guided range. The updated guided range for adjusted EBITDA for the same period is anticipated to be $3.71-$3.77 compared with $3.70-$3.80 billion mentioned previously.
Currently, IQV carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Snapshot
Omnicom Group (OMC - Free Report) reported impressive second-quarter 2024 results.
OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and grew 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% on a year-over-year basis.
ManpowerGroup (MAN - Free Report) reported mixed second-quarter 2024 results.
MAN’s quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year, mainly due to a run-off Proservia Germany business and Argentina-related currency translation losses. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year on a reported basis and 3% on a constant-currency basis.