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Post Earnings Coverage as Quintiles IMS' Q4 Bottom-line Beat Market Estimates

Upcoming AWS Coverage on Laboratory Corp. of America Post-Earnings Results

LONDON, UK / ACCESSWIRE / March 3, 2017 / Active Wall St. announces its post-earnings coverage on Quintiles IMS Holdings, Inc. (NYSE: Q). The Company disclosed its financial results for the fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) on February 14, 2017. On October 03, 2016, the merger of Quintiles Transnational Holdings Inc. and IMS Health Holdings Inc. was completed. The Danbury, Connecticut and Research Triangle Park, North Carolina-based Company's combined quarterly net revenues grew 4.2% on a constant currency, 3.5% at an actual basis. Register with us now for your free membership at:


One of Quintiles IMS Holdings' competitors within the Medical Laboratories & Research space, Laboratory Corporation of America Holdings (NYSE: LH), reported on February 16, 2017, its results for Q4 and year ended December 31, 2016. The Company also provided 2017 guidance. AWS will be initiating a research report on Laboratory Corp. in the coming days.

Today, AWS is promoting its earnings coverage on Q; touching on LH. Get our free coverage by signing up to:


Earnings Reviewed

During the quarter ended December 31, 2016, Quintiles IMS revenues came in at $1.95 billion compared to $1.13 billion recorded at the end of Q4 FY15. However, net revenue numbers for Q4 FY16 lagged behind market consensus estimates of $2.05 billion. The Company's combined revenue along with deferred revenue adjustment of $55 million was $2.01 billion in Q4 FY16 compared to $1.94 billion in Q4 FY15.

For Q4 FY16, the Company's income from operations came in at $144 million compared to $178 million in Q4 FY15. Moreover, the Company reported adjusted EBITDA of $541 million for Q4 FY16 versus $231 million in the last year's comparable quarter.

The integrated healthcare service provider reported net loss attributable to Quintiles IMS of $178 million, or $0.74 loss per diluted share in Q4 FY16, against net income attributable to Quintiles IMS of $105 million, or $0.85 per diluted share, in Q4 FY15. The Company's adjusted net income for the reported quarter stood at $266 million, or $1.09 per diluted share, beating Wall Street adjusted net income expectations of $1.05 per diluted share.

In FY16, Quintiles IMS's revenue came in at $5.36 billion compared to $4.33 billion in FY15. On a full-year combined Company basis, and excluding the deferred revenue adjustment of $55 million, the Company posted revenues of $7.78 billion in FY16. The Company reported net income of $115 million, or $0.76 per diluted share, in FY16 versus $387 million, or $3.08 per diluted share, in FY15.


During Q4 FY16, Combined Company Commercial Solutions segment's revenue grew 4.9% y-o-y on a constant currency basis and 4.2% y-o-y on actual foreign exchange rates basis to $934 million. The legacy IMS Commercial business revenues, excluding $55 million deferred revenue adjustment, was $860 million in Q4 FY16, up 6.9% y-o-y on a constant currency basis and 6.1% y-o-y on actual foreign exchange rates basis. Furthermore, legacy Quintiles Commercial business reported revenues of $74 million in Q4 FY16, down 14.0% y-o-y on a constant currency basis and 14.2% y-o-y on actual foreign exchange rates basis.

The combined Company's Research & Development Solutions segment's revenue for Q4 FY16 was $882 million, which grew 6.6% y-o-y on a constant currency basis and 5.4% y-o-y on actual foreign exchange rates basis.

In Q4 FY16, the Company's Integrated Engagement Services segment's combined revenue fell 8.4% y-o-y on a constant currency basis and 6.7% y-o-y on actual foreign exchange rates basis to $192 million.

Cash Flow & Balance Sheet

During full year FY16, net cash provided by operating activities increased to $860 million from $476 million in the prior year's same period. At the close of books on December 31, 2016, Quintiles IMS had $1.20 billion in cash and cash equivalents compared to $977 million at the close of books on December 31, 2015. The Company's long-term debt stood at $7.11 billion as on December 31, 2016, compared to $2.42 billion as on December 31, 2015. Furthermore, the Company's gross leverage ratio was 3.7 times, whereas net leverage ratio was 3.1 times of the combined Company trailing 12-month adjusted EBITDA as on December 31, 2016.

Share Repurchase

In Q4 FY16, Quintiles IMS repurchased $1.0 billion of its stock. On February 12, 2017, the Company's Board of Directors authorized an increase in share repurchase authorization by $1.0 billion aggregating to $2.5 billion. Furthermore, the Company has $1.5 billion remaining under its total share repurchase authorization.


In its guidance for the full-year FY17, Quintiles IMS projects revenues at constant currency to be in the range of $8.13 billion to $8.23 billion, while on actual currency basis FY17 revenues is expected to be between $8.00 billion and $8.10 billion. Furthermore, adjusted EBITDA for the full year FY17 is anticipated to be between $2.00 billion and $2.10 billion, whereas as adjusted diluted EPS is forecasted to be in the range of $4.40 to $4.55.

For Q1 FY17, the Company expects revenues to be in the range of $1.89 billion to $1.93 billion with adjusted EBITDA range of $450 million to $465 million. Additionally, adjusted diluted EPS for the upcoming quarter is forecasted to be between $0.93 and $0.97.

Stock Performance

At the close of trading session on Thursday, March 02, 2017, Quintiles IMS' stock price marginally fell 0.42% to end the day at $76.78. A total volume of 1.38 million shares were exchanged during the session. The Company's share price has gained 17.33% in the past twelve months and 0.96% on YTD basis. The stock currently has a market cap of $18.21 billion and is trading at a PE ratio of 46.09.

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