IQVIA (IQV) to Report Q4 Earnings: What's in the Offing?
IQVIA Holdings, Inc. IQV is scheduled to release its fourth-quarter 2023 results on Feb 14 before market open.
IQV has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the four trailing quarters, the average surprise being 1.63%.
Q4 Expectations
The Zacks Consensus Estimate for the top line is currently pegged at $3.79 billion, up 1.3% from the year-ago actual figure. A healthy 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 $2.82, indicating 1.4% year-over-year growth. The company is expected to have reaped the benefits of the cost reduction programs.
Segmental Expectations
Our estimate for fourth-quarter 2023 revenues from the Technology and Analytics segment is currently pegged at $1.5 billion, slightly above the fourth-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 $2.11 billion, up 2.3% from the year-ago reported figure. The growth is likely to have been due to the continued demand seen in the segment. Our estimate for Contract sales and Medical solutions’ revenues is pegged at $174 million, down 4.4% from the year-ago figure.
Our estimate for adjusted EBITDA for the fourth quarter is pegged at $959.6 million, indicating 4.3% 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 does not conclusively predict 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. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
IQV currently has an Earnings ESP of 0.00% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
Waste Connections WCN: The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.03 billion, indicating growth of 8.8% from the year-ago figure. For earnings, the consensus mark is pegged at $1.08 per share, suggesting a 21.4% rise from the year-ago quarter. WCN beat the consensus estimate in each of the past four quarters with an average surprise of 1.48%.
WCN currently has an Earnings ESP of +0.59% and a Zacks Rank of 3. It is scheduled to declare its fourth-quarter 2023 results on Feb 13.
Fidelity National FIS: The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.52 billion, indicating a decline of 32.2% from the year-ago figure. For earnings, the consensus mark is pegged at 95 cents per share, implying a 44.4% plunge from a year ago. FIS beat the consensus estimate in three of the past four quarters and missed on the other instance. It has a negative surprise of 7%, on average.
FIS currently has an Earnings ESP of +2.52% and a Zacks Rank of 3. It is scheduled to declare its fourth-quarter 2023 results on Feb 26.
Waste Management WM: The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $5.19 billion, indicating growth of 5.1%. For earnings, the consensus mark is pegged at $1.53 per share, up 17.7% from the year-ago quarter. The company beat the consensus estimate in two of the past four quarters and matched in the other two instances. It has a negative average surprise of 1%.
WM currently carries an Earnings ESP of +0.70% and a Zacks Rank of 2. The company is scheduled to declare its fourth-quarter results on Feb 12.
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Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
Waste Management, Inc. (WM) : Free Stock Analysis Report
Waste Connections, Inc. (WCN) : Free Stock Analysis Report
IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report
