We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Understanding IQVIA (IQV) Reliance on International Revenue
Read MoreHide Full Article
Have you looked into how IQVIA Holdings (IQV - Free Report) performed internationally during the quarter ending June 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.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
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.
For the quarter, the company's total revenue amounted to $3.81 billion, experiencing an increase of 2.3% year over year. Next, we'll explore the breakdown of IQV's international revenue to understand the importance of its overseas business operations.
Unveiling Trends in IQV's International Revenues
Of the total revenue, $1.18 billion came from Europe and Africa during the last fiscal quarter, accounting for 30.9%. This represented a surprise of +3.66% as analysts had expected the region to contribute $1.14 billion to the total revenue. In comparison, the region contributed $1.16 billion, or 31%, and $1.12 billion, or 29.9%, to total revenue in the previous and year-ago quarters, respectively.
Asia-Pacific generated $773 million in revenues for the company in the last quarter, constituting 20.3% of the total. This represented a surprise of +2.57% compared to the $753.61 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia-Pacific accounted for $778 million (20.8%), and in the year-ago quarter, it contributed $791 million (21.2%) to the total revenue.
International Market Revenue Projections
It is projected by analysts on Wall Street that IQVIA will post revenues of $3.85 billion for the ongoing fiscal quarter, an increase of 3.1% from the year-ago quarter. The expected contributions from Europe and Africa and Asia-Pacific to this revenue are 30% and 19.6%, translating into $1.16 billion and $753.53 million, respectively.
For the entire year, the company's total revenue is forecasted to be $15.46 billion, which is an improvement of 3.2% from the previous year. The revenue contributions from different regions are expected as follows: Europe and Africa will contribute 30.2% ($4.67 billion) and Asia-Pacific 19.8% ($3.06 billion) to the total revenue.
Closing Remarks
IQVIA's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
A Review of IQVIA's Recent Stock Market Performance
Over the past month, the stock has seen an increase of 13.4% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 0.2%. The Zacks Medical sector, IQVIA's industry group, has ascended 0.5% over the identical span. In the past three months, there's been an increase of 7.3% in the company's stock price, against a rise of 7.5% in the S&P 500 index. The broader sector has increased by 5.9% during this interval.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Understanding IQVIA (IQV) Reliance on International Revenue
Have you looked into how IQVIA Holdings (IQV - Free Report) performed internationally during the quarter ending June 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.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
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.
For the quarter, the company's total revenue amounted to $3.81 billion, experiencing an increase of 2.3% year over year. Next, we'll explore the breakdown of IQV's international revenue to understand the importance of its overseas business operations.
Unveiling Trends in IQV's International Revenues
Of the total revenue, $1.18 billion came from Europe and Africa during the last fiscal quarter, accounting for 30.9%. This represented a surprise of +3.66% as analysts had expected the region to contribute $1.14 billion to the total revenue. In comparison, the region contributed $1.16 billion, or 31%, and $1.12 billion, or 29.9%, to total revenue in the previous and year-ago quarters, respectively.
Asia-Pacific generated $773 million in revenues for the company in the last quarter, constituting 20.3% of the total. This represented a surprise of +2.57% compared to the $753.61 million projected by Wall Street analysts. Comparatively, in the previous quarter, Asia-Pacific accounted for $778 million (20.8%), and in the year-ago quarter, it contributed $791 million (21.2%) to the total revenue.
International Market Revenue Projections
It is projected by analysts on Wall Street that IQVIA will post revenues of $3.85 billion for the ongoing fiscal quarter, an increase of 3.1% from the year-ago quarter. The expected contributions from Europe and Africa and Asia-Pacific to this revenue are 30% and 19.6%, translating into $1.16 billion and $753.53 million, respectively.
For the entire year, the company's total revenue is forecasted to be $15.46 billion, which is an improvement of 3.2% from the previous year. The revenue contributions from different regions are expected as follows: Europe and Africa will contribute 30.2% ($4.67 billion) and Asia-Pacific 19.8% ($3.06 billion) to the total revenue.
Closing Remarks
IQVIA's leaning on foreign markets for its revenue stream presents a mix of chances and challenges. Therefore, a vigilant watch on its international revenue movements can greatly aid in projecting the company's future direction.
In an era of growing international interdependencies and escalating geopolitical disputes, Wall Street analysts are vigilant in tracking these trends for businesses with a global reach, in order to refine their predictions of earnings. It should be noted, however, that a multitude of other elements, such as a company's domestic position, also play a significant role in shaping the earnings forecasts.
At Zacks, a company's changing earnings outlook is given considerable attention due to its proven, strong influence on a stock's price performance in the near term. The connection here is straightforward and positive: when earnings estimates are revised upward, the stock price generally follows suit, increasing as well.
With an impressive externally audited track record, our proprietary stock rating tool - the Zacks Rank - harnesses the power of earnings estimate revisions and serves as an effective indicator of a stock's near-term price performance.
IQVIA currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
A Review of IQVIA's Recent Stock Market Performance
Over the past month, the stock has seen an increase of 13.4% in its value, whereas the Zacks S&P 500 composite has posted a decrease of 0.2%. The Zacks Medical sector, IQVIA's industry group, has ascended 0.5% over the identical span. In the past three months, there's been an increase of 7.3% in the company's stock price, against a rise of 7.5% in the S&P 500 index. The broader sector has increased by 5.9% during this interval.