IQVIA (IQV) Beats on Q3 Earnings & Revenues, Raises 2021 View
IQVIA Holdings Inc. IQV reported solid third-quarter 2021 results, wherein the company’s earnings as well as revenues surpassed the Zacks Consensus Estimate.
Adjusted earnings per share of $2.17 beat the consensus mark by 1.9% and improved 33.1% on a year-over-year basis. The reported figure exceeded the guided range of $2.06-$2.13.
Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year on a reported basis and 21.1% on constant-currency basis. The reported figure exceeded the guided range of $3.29-$3.365 billion.
So far this year, shares of IQVIA have gained 40.4% against 23.4% decline of the industry it belongs. The Zacks S&P 500 composite grew 21.5% in the same time frame.
Image Source: Zacks Investment Research
Let’s check out the numbers in detail:
Revenues from Technology & Analytics Solutions totaled $1.34 billion, up 10.8% on a reported basis and 9.9% on constant-currency basis.
Research & Development Solutions’ revenues of $1.85 billion increased 32.4% on a reported basis and 31.9% on constant-currency basis.
Revenues from Contract Sales & Medical Solutions totaled $201 million, up 12.3% on a reported basis and 12.8% on a constant-currency basis.
Adjusted EBITDA was $728 million, up 20.5% year over year.
IQVIA Holdings Inc. Price, Consensus and EPS Surprise
Balance Sheet and Cash Flow
IQVIA exited third-quarter 2021 with cash and cash equivalents balance of $1.47 billion compared with $1.81 billion at the end of the prior quarter. Long-term debt of $12.1 billion was flat sequentially.
The company generated $844 million of cash from operating activities in the reported quarter and CapEx was $162 million. Free cash flow was $682 million.
During the reported quarter, IQVIA repurchased shares worth $125 million. As of Sep 30, 2021, the company had nearly $697 million of share-buyback authorization remaining.
Fourth-Quarter 2021 Guidance
IQVIA expects fourth-quarter revenues in the range of $3.537-$3.612 billion. The current Zacks Consensus Estimate of $3.47 billion lies below the guidance.
Adjusted earnings per share are expected between $2.37 and $2.47. The Zacks Consensus Estimate of $2.38 lies within the guidance.
Adjusted EBITDA is anticipated between $786 million and $816 million.
For the full year, IQVIA now expects revenues in the band of $13.775-$13.850 billion compared with the prior projection of $13.55-$13.70 billion. The current Zacks Consensus Estimate of $13.68 billion is lower than the updated view.
Adjusted earnings per share are expected between $8.85 and $8.95 compared with the prior forecast of $8.70-$8.90. The current Zacks Consensus Estimate of $8.84 falls short of the revised outlook.
Adjusted EBITDA is anticipated between $2.98 billion and $3.01 billion compared with the prior prediction of $2.95-$3 billion.
Currently, IQVIA carries a Zacks Rank #2 (Buy). 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 awaiting third-quarter 2021 earnings reports of key players like Fiserv (FISV), Automatic Data Processing (ADP) and Republic Services (RSG). While Fiserv and Automatic Data Processing are slated to report the same on Oct 27, Republic Services is scheduled to release the result on Oct 28.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Click to get this free report
Automatic Data Processing, Inc. (ADP): Free Stock Analysis Report
Fiserv, Inc. (FISV): Free Stock Analysis Report
Republic Services, Inc. (RSG): Free Stock Analysis Report
IQVIA Holdings Inc. (IQV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.