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What's in Store for IQVIA Holdings (IQV) in Q1 Earnings?

Zacks Equity Research

IQVIA Holdings Inc. IQV is scheduled to report first-quarter 2019 results on May 1, before the opening bell.

Strength across segments, operating performance and tax efficiencies are likely to boost IQVIA Holdings’ results.

So far this year, shares of IQVIA Holdings have gained 19.4% compared with 22.7% rise of the industry it belongs to and 16.9% increase of the Zacks S&P 500 composite.

 

Let’s see how things are shaping up for the announcement.

Strength Across Segments to Drive the Top Line

The Zacks Consensus Estimate for first-quarter 2019 revenues is pegged at $2.66 billion, indicating growth of 3.9% from the year-ago reported figure. Notably, the consensus estimate falls within the company’s guided range $2.63-$2.68 billion. The expected top line growth is likely to be driven by strength across the company’s Research & Development Solutions (R&DS) and Technology & Analytics Solutions (TAS) segments.

Segment wise, TAS should benefit from strength across real-world business and other commercial offerings. Strategic collaborations such as the agreement with Roche, Genomics England and a technology deal with Theramex should help the company strengthen its technological solutions. Launch of IQVIA Biotech for serving small biotech and biopharma companies through integrated clinical and commercial solutions, two new site portal technology capabilities to streamline clinical trial communications, a SaaS eConsent tool for use in clinical trials and development of SaaS safety platform, aimed at lowering cost and complexity of pharmacovigilance and enhancing organization’s focus on patient safety are the other major positives.

R&DS segment is expected to benefit from strength across contracted services and net new and solid performance of clinical development team. As the life sciences industry is expected to grow over the next five years, the segment should also benefit from the growth opportunities. Some of the benefits are expected to be reflected in the upcoming results. Substantial organic growth is likely to be witnessed in the segment.

In fourth-quarter 2018, total revenues of $2.68 billion had increased 6.6% year over year.

Tax Efficiency & Operational Performance to Aid Bottom Line

The Zacks Consensus Estimate for earnings per share (EPS) in the to-be-reported quarter is pegged at $1.51, indicating growth of 12.7% from the year-ago period reported figure. Notably, the consensus estimate lies within the company guided range of $1.48-$1.53. Tax efficiencies and solid operational performance are likely to boost the company’s bottom line.

In fourth-quarter 2018, adjusted earnings per share of $1.50 had increased 23% year over year.

What Our Model Says

Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

IQVIA Holdings has an Earnings ESP of 0.00% and a Zacks Rank #3, a combination that makes surprise prediction difficult.

IQVIA Holdings Inc. Price and EPS Surprise

 

IQVIA Holdings Inc. Price and EPS Surprise | IQVIA Holdings Inc. Quote

Stocks That Warrant a Look

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on earnings in first-quarter 2019:

WEX WEX has an Earnings ESP of +1.78% and a Zacks Rank #2 (Buy). The company is scheduled to report results on May 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

FLEETCOR Technologies FLT has an Earnings ESP of +0.38% and a Zacks Rank #2. The company is scheduled to report results on May 7.

EVERTEC EVTC has an Earnings ESP of +3.73% and a Zacks Rank #3. The company is slated to release results on May 1.

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