IQVIA Holdings' (IQV) Q2 Earnings Beat Estimates, Decline Y/Y
IQVIA Holdings Inc. IQV reported solid second-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share (excluding 84 cents from non-recurring items) of $2.43 beat the Zacks Consensus Estimate by 2.5% but declined marginally on a year-over-year basis. Total revenues of $3,728 million also outpaced the Zacks Consensus Estimate marginally. The top line increased 5.3% year over year on a reported basis and 5.5% on a constant-currency basis.
Segmental Revenues
Revenues from Technology & Analytics Solutions amounted to $1,456 million. The metric rose 3.4% on both reported basis and at constant currency.
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 $2,096 million increased 7.5% on a reported basis and 7.6% on a constant-currency basis.
Revenues from Contract Sales & Medical Solutions totaled $176 million, down 3.8% on a reported basis and was flat at constant currency.
Operating Performance
Adjusted EBITDA was $864 million, up 8% year over year.
Balance Sheet and Cash Flow
IQVIA exited second-quarter 2023 with cash and cash equivalents of $1,382 million compared with $1,494 million at the end of the prior quarter. Long-term debt (less current portion) was $11,833 million compared with $12,433 million at the prior-quarter end.
IQV generated $402 million of cash from operating activities in the reported quarter while capital expenditure was $160 million. Free cash flow was $242 million.
In the second quarter of 2023, IQV repurchased shares worth $490 million. As of Jun 30, 2023, IQVIA had $736 million of share repurchase authorization available.
Q3 Guidance
For the third quarter of 2023, IQV expects revenues to be between $3,760 million and $3,810 million, indicating growth of 5.6-7.0% on a reported basis and 3.9-5.3% at constant currency. The Zacks Consensus Estimate is pegged at $3.70 billion, lower than management’s expectation.
IQV anticipates adjusted EBITDA in the range of $880-$895 million, suggesting a rise of 8.1-10.0%.
Adjusted earnings per share are expected to be between $2.39 and $2.49, implying a decline of 3.6% to an improvement of 0.4% on a reported basis. The Zacks Consensus Estimate is pegged at $2.37, lower than the company’s anticipation.
2023 Guidance
IQVIA expects revenues to be between $15,050 million and $15,175 million (prior view: $15.15 billion and $15.40 billion), hinting at a jump of 4.4-5.3% on a reported basis and 4.1-5% at constant currency (earlier guidance: 5.1-6.9% on a reported basis and 4.7-6.5% at constant currency). The Zacks Consensus Estimate is pegged at $15.24 billion, higher than the company’s projection.
Adjusted earnings per share are estimated to be between $10.2 and $10.45 (up 0.4-2.9%) (prior view: $10.26 and $10.56). The midpoint of the updated guidance ($10.325) is below the Zacks Consensus Estimate of $10.37.
Adjusted EBITDA is anticipated to be between $3.6 billion and $3.635 billion (prior view: $3.625 billion and $3.695 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.
Earnings Snapshot
Interpublic Group of Companies IPG second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed. Adjusted earnings (considering 6 cents from non-recurring items) of 74 cents per share beat the consensus estimate by 23.3%. The bottom line declined 17.5% on a year-over-year basis.
Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
Equifax EFX reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues lagged. Adjusted earnings (excluding 59 cents from non-recurring items) of $1.71 per share outpaced the consensus mark by 2.4%. The bottom line dipped 18.2% from the year-ago figure.
Total revenues of $1.32 billion fell short of the consensus estimate by 0.4% while matching the year-ago figure on a reported basis. The top line gained 1% on a local-currency basis.
ManpowerGroup MAN reported lower-than-expected second-quarter 2023 results. Adjusted earnings of $1.58 per share lagged the Zacks Consensus Estimate by 1.9% and plunged 32.2% year over year owing to restructuring costs and Argentina-related non-cash currency translation losses.
Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. The top line fell 3% on a constant-currency basis.
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