U.S. markets closed
  • S&P 500

    4,538.43
    -38.67 (-0.84%)
     
  • Dow 30

    34,580.08
    -59.71 (-0.17%)
     
  • Nasdaq

    15,085.47
    -295.85 (-1.92%)
     
  • Russell 2000

    2,159.31
    -47.02 (-2.13%)
     
  • Crude Oil

    66.22
    -0.28 (-0.42%)
     
  • Gold

    1,782.10
    +21.40 (+1.22%)
     
  • Silver

    22.45
    +0.17 (+0.76%)
     
  • EUR/USD

    1.1317
    +0.0012 (+0.10%)
     
  • 10-Yr Bond

    1.3430
    -0.1050 (-7.25%)
     
  • GBP/USD

    1.3235
    -0.0067 (-0.50%)
     
  • USD/JPY

    112.8000
    -0.4090 (-0.36%)
     
  • BTC-USD

    53,518.12
    -3,240.86 (-5.71%)
     
  • CMC Crypto 200

    1,367.14
    -74.62 (-5.18%)
     
  • FTSE 100

    7,122.32
    -6.89 (-0.10%)
     
  • Nikkei 225

    28,029.57
    +276.20 (+1.00%)
     

IQVIA (IQV) Beats on Q3 Earnings & Revenues, Raises 2021 View

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

IQVIA Holdings Inc. IQV reported solid third-quarter 2021 results, wherein the company’s earnings as well as revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. The reported figure exceeded the guided range of $2.06-$2.13.

Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported basis and 21.1% on constant-currency basis. The reported figure exceeded the guided range of $3.29-$3.365 billion.

So far this year, shares of IQVIA have gained 40.4% against 23.4% decline of the industry it belongs. The Zacks S&P 500 composite grew 21.5% in the same time frame.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

Let’s check out the numbers in detail:

Segmental Revenues

Revenues from Technology & Analytics Solutions totaled $1.34 billion, up 10.8% on a reported basis and 9.9% on constant-currency basis.

Research & Development Solutions’ revenues of $1.85 billion increased 32.4% on a reported basis and 31.9% on constant-currency basis.

Revenues from Contract Sales & Medical Solutions totaled $201 million, up 12.3% on a reported basis and 12.8% on a constant-currency basis.

Operating Performance

Adjusted EBITDA was $728 million, up 20.5% year over year.

IQVIA Holdings Inc. Price, Consensus and EPS Surprise

IQVIA Holdings Inc. Price, Consensus and EPS Surprise
IQVIA Holdings Inc. Price, Consensus and EPS Surprise

IQVIA Holdings Inc. price-consensus-eps-surprise-chart | IQVIA Holdings Inc. Quote

Balance Sheet and Cash Flow

IQVIA exited third-quarter 2021 with cash and cash equivalents balance of $1.47 billion compared with $1.81 billion at the end of the prior quarter. Long-term debt of $12.1 billion was flat sequentially.

The company generated $844 million of cash from operating activities in the reported quarter and CapEx was $162 million. Free cash flow was $682 million.

During the reported quarter, IQVIA repurchased shares worth $125 million. As of Sep 30, 2021, the company had nearly $697 million of share-buyback authorization remaining.

Fourth-Quarter 2021 Guidance

IQVIA expects fourth-quarter revenues in the range of $3.537-$3.612 billion. The current Zacks Consensus Estimate of $3.47 billion lies below the guidance.

Adjusted earnings per share are expected between $2.37 and $2.47. The Zacks Consensus Estimate of $2.38 lies within the guidance.

Adjusted EBITDA is anticipated between $786 million and $816 million.

2021 Guidance

For the full year, IQVIA now expects revenues in the band of $13.775-$13.850 billion compared with the prior projection of $13.55-$13.70 billion. The current Zacks Consensus Estimate of $13.68 billion is lower than the updated view.

Adjusted earnings per share are expected between $8.85 and $8.95 compared with the prior forecast of $8.70-$8.90. The current Zacks Consensus Estimate of $8.84 falls short of the revised outlook.

Adjusted EBITDA is anticipated between $2.98 billion and $3.01 billion compared with the prior prediction of $2.95-$3 billion.

Currently, IQVIA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Investors interested in the broader Zacks Business Services sector are awaiting third-quarter 2021 earnings reports of key players like Fiserv (FISV), Automatic Data Processing (ADP) and Republic Services (RSG). While Fiserv and Automatic Data Processing are slated to report the same on Oct 27, Republic Services is scheduled to release the result on Oct 28.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Automatic Data Processing, Inc. (ADP) : Free Stock Analysis Report

Fiserv, Inc. (FISV) : Free Stock Analysis Report

Republic Services, Inc. (RSG) : Free Stock Analysis Report

IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research