IQVIA Holdings Inc. IQV reported solid fourth-quarter 2018 results wherein the company's earnings and revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings of $1.50 per share beat the consensus mark by 3 cents and increased on a year-over-year basis. Total revenues of $2.68 billion outpaced the consensus estimate by $71.9 million and increased 6.6% year over year on a reported basis and 8.1% on a constant-currency basis.
Over the past year, shares of IQVIA Holdings have gained 25.9%, significantly outperforming the 9% rise of the industry it belongs to and 2.2% gain of the Zacks S&P 500 Composite Index.
Let's check out the numbers in detail:
Revenues from Technology & Analytics Solutions (TAS) totaled $1.12 billion, up 8.8% on a reported basis and 10.9% on a constant-currency basis. The segment accounted for 42% of total revenues.
Research & Development Solutions (R&DS) revenues of $1.36 billion increased 7.8% on a reported basis and 8.7% on a constant-currency basis. The segment contributed 51% to total revenues.
Revenues from Contract Sales & Medical Solutions (CSMS) totaled $193 million, down 10.6% on a reported basis and 8.8% on a constant-currency basis. The segment accounted for 7% of total revenues.
Adjusted EBITDA was $583 million, up 10.8% on a reported basis and 9.7% on a constant-currency basis.
Operating income was $207 million, up 45.7% from the year-ago quarter. Operating income margin increased to 7.7% from 5.6% in the year-ago quarter.
Total selling, general and administrative expenses of $443 million were down 5.5% from the year-ago quarter.
IQVIA Holdings Inc. Price, Consensus and EPS Surprise
IQVIA Holdings Inc. Price, Consensus and EPS Surprise | IQVIA Holdings Inc. Quote
Balance Sheet and Cash Flow
IQVIA Holdings exited fourth-quarter 2018 with cash and cash equivalents balance of $891 million compared with $827 million at the end of the prior quarter. Long-term debt at the end of the quarter was $10.9 billion compared with $10.5 billion at the end of the third quarter.
The company generated $417 million of cash from operating activities in the reported quarter and spent $138 million on capex.
IQVIA Holdings repurchased shares worth $604 million during the reported quarter, which includes $247 million repurchase of IQVIA's remaining private equity sponsors. On Feb 13, 2019, the company's board of directors approved a $2.0 billion increase its share repurchase authorization.
IQVIA Holdings unveiled its guidance for first-quarter and full-year 2019.
For first-quarter 2019, Insperity projects adjusted earnings in the range of $1.48-$1.53 per share. The current Zacks Consensus Estimate of $1.48 matches the lower end of the guided range.
Revenues are expected between $2,630 million and $2,680 million. Adjusted EBITDA is anticipated in the range of $575-$590 million.
For the full year, the company projects adjusted earnings between $6.20 per share and $6.40 per share. The Zacks Consensus Estimate is pegged lower at $5.53.
Revenues are expected to be between $10,900 million and $11,125 million. Adjusted EBITDA is anticipated in the range of $2,375-$2,425 million.
Zacks Rank & Upcoming Releases
IQVIA Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Investors interested in the broader Zacks Business Services sector are keenly awaiting fourth-quarter 2018 earnings reports of key players like Avis Budget CAR , Green Dot GDOT and Delphi Technologies DLPH . While Avis Budget and Green Dot are scheduled to report on Feb 20, Delphi Technologies is slated to report on Feb 21.
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