IQVIA (IQV) to Report Q3 Earnings: What's in the Offing?
IQVIA Holdings, Inc. IQV is scheduled to release its third-quarter 2023 results on Nov 1, before market open.
IQV has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all four trailing quarters, the average surprise being 2.3%.
Q3 Expectations
The Zacks Consensus Estimate for the top line is currently pegged at $3.78 billion, up 6.2% from the year-ago actual figure. The industry’s stable demand environment is likely to have driven such revenue growth.
IQVIA Holdings Inc. Price and EPS Surprise
IQVIA Holdings Inc. price-eps-surprise | IQVIA Holdings Inc. Quote
The consensus estimate for earnings per share is pegged at $2.46, down 0.8% year over year. Increased costs are likely to have weighed on the company’s bottom line.
Segmental Expectations
Our estimate for third-quarter 2023 revenues from the Technology and Analytics segment is currently pegged at $1.49 billion, up 6.7% from the third-quarter 2022 reported figure. The uptick is likely to have been due to the efficient use of AI for providing data and analytics solutions.
Our estimate for the Research and Development segment’s revenues is currently pegged at $2.1 billion, up 6.2% from the year-ago reported figure. The growth can be correlated to the new clients won by the company. Our estimate for Contract sales and Medical solutions’ revenues is pegged at $186.3 million, up 1.8% from the year-ago figure.
Our estimate for adjusted EBITDA for the third quarter is pegged at $889.2 million, indicating 9.2% growth from the year-ago figure. This uptick is likely to have been supported by revenue growth and cost-management discipline.
What Our Model Says
Our proven model predicts an earnings beat for IQV this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
IQV has an Earnings ESP of +0.41% and a Zacks Rank of 3.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.
Aptiv APTV currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The company’s revenues are expected to increase 7.74% from the year-ago figure and the bottom line is expected to indicate 7% decline from the prior-year figure.
APTV has beaten the Zacks Consensus Estimate in all four quarters, with an average surprise of 13.4%. The company has an Earnings ESP of +5.99% and a Zacks Rank of 3. APTV is expected to release its third-quarter earnings on Nov 2.
Trane Technologies TT: The company’s revenues and bottom line are expected to indicate growth of 9.3% and 17.2%, respectively, from the year-ago figure.
TT has beaten the Zacks Consensus Estimate in all four quarters, with an average surprise of 7.3%. The company has an Earnings ESP of +0.54% and a Zacks Rank of 2. TT is expected to release its third-quarter earnings on Nov 1.
Verisk Analytics VRSK: The company’s revenues are expected to decline 11.1% from the year-ago figure while the bottom line is expected to match the prior-year figure.
VRSK has beaten the Zacks Consensus Estimate in three of the previous four quarters and matched on one instance, with an average surprise of 9.9%. The company has an Earnings ESP of +2.41% and a Zacks Rank of 3. VRSK is expected to release its third-quarter earnings on Nov 1.
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