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IQVIA (IQV) to Report Q2 Earnings: What's in the Cards?

IQVIA Holdings Inc. IQV is set to report second-quarter 2020 results on Jul 22, before market opens.

Let’s check out the expectations in detail.

Expectations This Time Around

IQVIA Holdings’ second-quarter 2020 financial performance is expected to have been significantly marred by the COVID-19 crisis. On its first-quarter 2020 call, the company had anticipated the biggest impact of COVID-19 on second-quarter results, accounting for nearly half of the expected full-year impact.

The Zacks Consensus Estimate for revenues is pegged at $2.41 billion, indicating a decline of 12.2% from the year-ago reported figure attributable to weakness across all segments — Research & Development Solutions (“R&DS”), Technology & Analytics Solutions (“TAS”) and Contract Sales & Medical Solutions (“CSMS”) and an unfavorable foreign-currency impact of 150 basis points. The consensus estimate lies within the guided range $2.37-$2.44 billion.

Segment-wise, the consensus mark for R&DS segment revenues is pegged at $1.13 billion, indicating decline of 20.9% from the year-ago quarter’s reported figure. The consensus estimate for TAS segment revenues stands at $1.09 billion, indicating year-over-year decline of 1.3%. The consensus mark for CSMS segment revenues is pegged at $179 million, indicating decline of 11.8% from the year-ago quarter reported figure.

Decline in operating margins is likely to have weighed on the bottom line. The Zacks Consensus Estimate for earnings is pegged at $1.05, indicating a massive decline of 31.2% from the year-ago reported figure. The consensus estimate lies within the guided range of $1 -$1.09.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for IQVIA Holdings 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 to buy or sell before they’re reported with our Earnings ESP Filter.

IQVIA Holdings has an Earnings ESP of -1.99% and a Zacks Rank #4 (Sell).

IQVIA Holdings Inc. Price and EPS Surprise

IQVIA Holdings Inc. Price and EPS Surprise

IQVIA Holdings Inc. price-eps-surprise | IQVIA Holdings Inc. Quote

Stocks to Consider

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 second-quarter 2020 earnings.

Waste Management WM has an Earnings ESP of +12.9% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aptiv APTV has an Earnings ESP of +13.24% and a Zacks Rank #3.

Waste Connections WCN has an Earnings ESP of +2.42% and a Zacks Rank #3.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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