IQVIA Holdings (IQV) Q3 Earnings Top Estimates, Revenues Miss
IQVIA Holdings Analytics Inc. IQV reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate, while revenues missed the mark.
Adjusted earnings (excluding 86 cents from non-recurring items) were $2.49 per share, beating the Zacks Consensus Estimate by 0.4% and increasing 1.2% from the year-ago reported figure.
Total revenues of $3.74 billion missed the consensus estimate by 1.2% but increased 4.9% from the year-ago figure. Revenues increased 4.1% on a constant-currency basis.
Quarter Details
Revenues from the Technology and Analytics segment were $1.43 billion, up 2.2% from the third-quarter 2022 reported figure but missing our estimated $1.49 billion. The segment’s revenues grew 0.9% on a constant-currency basis.
IQVIA Holdings Inc. Price, Consensus and EPS Surprise
IQVIA Holdings Inc. price-consensus-eps-surprise-chart | IQVIA Holdings Inc. Quote
The Research and Development segment’s revenues were $2.12 billion, up 7.2% from the year-ago reported figure. The figure beat our estimate by 2%. Contract Sales & Medical Solutions revenues were flat on a year-over-year basis at $183 million and rose 4.9% on a constant-currency basis. The figure, however, lagged our estimated $186.3 million.
Adjusted EBITDA for the third quarter is pegged at $888 million, indicating 9.1% growth from the year-ago figure but missing our estimated $889.2 million.
The company exited the quarter with cash and cash equivalents of $1.22 billion compared with $1.38 billion held at the end of the previous quarter. Long-term debt was $12.32 billion compared with $11.83 billion held at the end of the previous quarter.
Net cash generated from operating activities was $583 million and capital expenditure for the quarter was $146 million. Free cash flow generated during the quarter was $437 million. The company repurchased shares of $144 million in the third quarter and returned $49.2 million as dividends to shareholders.
4Q23 Guidance
Revenues are expected to be in the range of $3.77-$3.8 billion. The Zacks Consensus Estimate is pegged at $3.78 billion, lower than the midpoint ($3.79 billion) of the guided range. Adjusted EBITDA is expected to be in the range of $957 million to $967 million. Adjusted earnings per share (EPS) are expected to be in the range of $2.79 to $2.86. The consensus estimate is pegged at $2.46, lower than the guided range.
2023 Guidance
Revenues are expected to be in the range of $14.89-$14.92 billion, representing a constant currency growth of 9%. The Zacks Consensus Estimate is pegged at $15.12 billion, higher than the guided range. Adjusted EBITDA is expected to be in the range of $3.56 billion to $3.57 billion. Adjusted EPS is expected to be in the range of $10.16 to $10.23. The consensus estimate is pegged at $10.28, higher than the guided range.
Earnings Snapshot
Fiserv, Inc. FI reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.
FI’s adjusted EPS (excluding 40 cents from non-recurring items) of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and increased 8.2% year over year.
Organic revenue growth was 12% in the quarter, driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
Waste Management Inc. WM reported mixed third-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate, while revenues missed the same.
WM’s adjustedEPS. Total revenues of $5.2 billion missed the consensus estimate by 1.2% but increased 2.4% year over year.
Verisk Analytics Inc. VRSK reported impressive third-quarter 2023 results, wherein earnings and revenues beat estimates.
Adjusted earnings (excluding 23 cents from non-recurring items) were $1.52 per share, beating the Zacks Consensus Estimate and increasing 4.1% from the year-ago reported figure. Such a beat was supported by strong growth in underwriting data solutions, life insurance and extreme events solutions.
VRSK’s total revenues of $677.6 million surpassed the consensus estimate by 2.3% but decreased 9.1% from the year-ago figure. The reduced top line can be correlated to the sale of the company’s environmental health and safety business and Financial Services segment.
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