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Why Is IQVIA (IQV) Up 0.3% 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 added about 0.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is IQVIA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
IQVIA Holdingsreported solid fourth-quarter 2018 results wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.50 per share beat the consensus mark by 3 cents and increased on a year-over-year basis. Total revenues of $2.68 billion outpaced the consensus estimate by $71.9 million and increased 6.6% year over year on a reported basis and 8.1% on a constant-currency basis.
Segmental Revenues
Revenues from Technology & Analytics Solutions (TAS) totaled $1.12 billion, up 8.8% on a reported basis and 10.9% on a constant-currency basis. The segment accounted for 42% of total revenues.
Research & Development Solutions (R&DS) revenues of $1.36 billion increased 7.8% on a reported basis and 8.7% on a constant-currency basis. The segment contributed 51% to total revenues.
Revenues from Contract Sales & Medical Solutions (CSMS) totaled $193 million, down 10.6% on a reported basis and 8.8% on a constant-currency basis. The segment accounted for 7% of total revenues.
Operating Performance
Adjusted EBITDA was $583 million, up 10.8% on a reported basis and 9.7% on a constant-currency basis. Operating income was $207 million, up 45.7% from the year-ago quarter. Operating income margin increased to 7.7% from 5.6% in the year-ago quarter. Total selling, general and administrative expenses of $443 million were down 5.5% from the year-ago quarter.
Balance Sheet and Cash Flow
IQVIA Holdings exited fourth-quarter 2018 with cash and cash equivalents balance of $891 million compared with $827 million at the end of the prior quarter. Long-term debt at the end of the quarter was $10.9 billion compared with $10.5 billion at the end of the third quarter.
The company generated $417 million of cash from operating activities in the reported quarter and spent $138 million on capex.
IQVIA Holdings repurchased shares worth $604 million during the reported quarter, which includes $247 million repurchase of IQVIA’s remaining private equity sponsors. On Feb 13, 2019, the company’s board of directors approved a $2.0 billion increase its share repurchase authorization.
Guidance
IQVIA Holdings unveiled its guidance for first-quarter and full-year 2019.
Q1 Guidance
For first-quarter 2019, Insperity projects adjusted earnings in the range of $1.48-$1.53 per share. Revenues are expected between $2,630 million and $2,680 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. Revenues are expected to be between $10,900 million and $11,125 million. Adjusted EBITDA is anticipated in the range of $2,375-$2,425 million.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months.
VGM Scores
Currently, IQVIA has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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
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) Up 0.3% Since Last Earnings Report?
It has been about a month since the last earnings report for IQVIA Holdings (IQV - Free Report) . Shares have added about 0.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is IQVIA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
IQVIA Holdings Tops Q4 Earnings, Revenue Estimates
IQVIA Holdings reported solid fourth-quarter 2018 results wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.50 per share beat the consensus mark by 3 cents and increased on a year-over-year basis. Total revenues of $2.68 billion outpaced the consensus estimate by $71.9 million and increased 6.6% year over year on a reported basis and 8.1% on a constant-currency basis.
Segmental Revenues
Revenues from Technology & Analytics Solutions (TAS) totaled $1.12 billion, up 8.8% on a reported basis and 10.9% on a constant-currency basis. The segment accounted for 42% of total revenues.
Research & Development Solutions (R&DS) revenues of $1.36 billion increased 7.8% on a reported basis and 8.7% on a constant-currency basis. The segment contributed 51% to total revenues.
Revenues from Contract Sales & Medical Solutions (CSMS) totaled $193 million, down 10.6% on a reported basis and 8.8% on a constant-currency basis. The segment accounted for 7% of total revenues.
Operating Performance
Adjusted EBITDA was $583 million, up 10.8% on a reported basis and 9.7% on a constant-currency basis. Operating income was $207 million, up 45.7% from the year-ago quarter. Operating income margin increased to 7.7% from 5.6% in the year-ago quarter. Total selling, general and administrative expenses of $443 million were down 5.5% from the year-ago quarter.
Balance Sheet and Cash Flow
IQVIA Holdings exited fourth-quarter 2018 with cash and cash equivalents balance of $891 million compared with $827 million at the end of the prior quarter. Long-term debt at the end of the quarter was $10.9 billion compared with $10.5 billion at the end of the third quarter.
The company generated $417 million of cash from operating activities in the reported quarter and spent $138 million on capex.
IQVIA Holdings repurchased shares worth $604 million during the reported quarter, which includes $247 million repurchase of IQVIA’s remaining private equity sponsors. On Feb 13, 2019, the company’s board of directors approved a $2.0 billion increase its share repurchase authorization.
Guidance
IQVIA Holdings unveiled its guidance for first-quarter and full-year 2019.
Q1 Guidance
For first-quarter 2019, Insperity projects adjusted earnings in the range of $1.48-$1.53 per share. Revenues are expected between $2,630 million and $2,680 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. Revenues are expected to be between $10,900 million and $11,125 million. Adjusted EBITDA is anticipated in the range of $2,375-$2,425 million.
How Have Estimates Been Moving Since Then?
Fresh estimates followed an upward path over the past two months.
VGM Scores
Currently, IQVIA has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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
IQVIA has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.