IQVIA (IQV) Beats on Q1 Earnings & Revenues, Tweaks '22 View

·4-min read

IQVIA Holdings Inc. IQV reported solid first-quarter 2022 results, wherein the company’s earnings as well as revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share of $2.47 beat the consensus mark by 1.7% and improved 13.3% on a year-over-year basis. The reported figure exceeded the guided range of $2.40-$2.46.

Total revenues of $3.57 billion outpaced the consensus estimate by 0.5% and increased 4.7% year over year on a reported basis and 6.8% on a constant-currency basis. The reported figure lies within the guided range of $3.515-$3.575 billion.

Over the past year, shares of IQVIA have declined 12.4% compared with 66% decline of the industry it belongs to. The Zacks S&P 500 composite grew 2.4% in the same time frame.

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Let’s check out the numbers in detail:

Segmental Revenues

Revenues from Technology & Analytics Solutions totaled $1.44 billion, up 6.8% on a reported basis and 9.8% on a constant-currency basis.

Research & Development Solutions’ revenues of $1.93 billion increased 3.5% on a reported basis and 4.7% on a constant-currency basis.

Revenues from Contract Sales & Medical Solutions totaled $195 million, up 1% on a reported basis and 5.7% on a constant-currency basis.

Operating Performance

Adjusted EBITDA was $812 million, up 9.1% year over year.

IQVIA Holdings Inc. Price, Consensus and EPS Surprise

IQVIA Holdings Inc. Price, Consensus and EPS Surprise
IQVIA Holdings Inc. Price, Consensus and EPS Surprise

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

Balance Sheet and Cash Flow

IQVIA exited first-quarter 2022 with cash and cash equivalents balance of $1.39 billion compared with $1.37 billion at the end of the prior quarter. Long-term debt was $12.5 billion compared with $12 billion at the end of the prior quarter.

The company generated $508 million of cash from operating activities in the reported quarter and CapEx was $177 million. Free cash flow was $331 million.

During the reported quarter, IQVIA repurchased shares worth $403 million. As of Mar 31, 2022, the company had nearly $2.12 million of its share-buyback authorization remaining.

Second-Quarter 2022 Guidance

IQVIA expects second-quarter revenues in the range of $3.47-$3.52 billion. The current Zacks Consensus Estimate of $3.64 billion lies above the guidance.

Adjusted earnings per share are expected between $2.35 and $2.42. The Zacks Consensus Estimate of $2.43 lies above the guidance.

Adjusted EBITDA is anticipated between $790 million and $805 million.

2022 Guidance

For the full year, IQVIA has updated its revenue guidance while reaffirming the same for adjusted earnings per share and adjusted EBITDA.

The company now expects revenues between $14.45 billion and $14.75 billion compared with the prior guidance of $14.7-$15 billion. The current Zacks Consensus Estimate of $14.84 billion lies above the updated guidance.

Adjusted earnings per share are expected between $9.95 and $10.25. The current Zacks Consensus Estimate of $10.15 lies within the guidance.

Adjusted EBITDA is anticipated between $3.330 billion and $3.405 billion.

Currently, IQVIA carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Omnicom Group OMC reported impressive first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Omnicom’s earnings of $1.39 per share beat the consensus mark by 8.6% and increased 4.5% year over year, driven by strong margin performance.

Omnicom’s total revenues of $3.4 billion surpassed the consensus estimate by 5.4% but declined slightly year over year.

Equifax EFX reported better-than-expected first-quarter 2022 results.

Equifax’s adjusted earnings of $2.22 per share beat the Zacks Consensus Estimate by 3.3% and improved 13% on a year-over-year basis. The reported figure exceeded the guided range of $2.08-$2.18.

Equifax’s revenues of $1.36 billion outpaced the consensus estimate by 2.4% and improved 12.4% year over year on a reported basis and 13% on a local-currency basis. The reported figure exceeded the guided range of $1.32-$1.34 billion.

Waste Management WM reported solid first-quarter 2022 results, wherein the company’s earnings and revenues surpassed the Zacks Consensus Estimate.

Waste Management’s adjusted earnings per share of $1.29 beat the Zacks Consensus Estimate by 15.2% and improved 21.7% year over year.

Waste Management’s total revenues of $4.66 billion beat the consensus estimate by 4.6% and increased 13.4% year over year.


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