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IQVIA (IQV) Beats on Q2 Earnings & Revenues, Raises 2021 View

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IQVIA Holdings Inc. IQV reported solid second-quarter 2021 results wherein the company’s earnings as well as revenues surpassed the Zacks Consensus Estimate.

Adjusted earnings per share of $2.13 beat the consensus mark by 2.9% and improved 80.5% on a year-over-year basis. Total revenues of $3.44 billion outpaced the consensus estimate by 5.5% and increased 36.4% year over year on a reported basis and 33.2% on constant-currency basis.

Let’s check out the numbers in detail:

Segmental Revenues

Revenues from Technology & Analytics Solutions totaled $1.35 billion, up 22% on a reported basis and 17.9% on constant-currency basis.

Research & Development Solutions’ revenues of $1.89 billion increased 53.1% on a reported basis and 50.7% on constant-currency basis.

Revenues from Contract Sales & Medical Solutions totaled $194 million, up 9.6% on a reported basis and 7.3% on a constant-currency basis.

Operating Performance

Adjusted EBITDA was $722 million, up 49.5% 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 second-quarter 2021 with cash and cash equivalents balance of $1.81 billion compared with $2.31 billion at the end of the prior quarter. Long-term debt of $12.1 billion was flat sequentially.

The company generated $539 million of cash from operating activities in the reported quarter and CapEx was $145 million. Free cash flow was $394 million.

During the reported quarter, IQVIA repurchased shares worth $45 million. As of Jun 30, 2021, the company had nearly $822 million of share-buyback authorization remaining.

Third-Quarter 2021 Guidance

IQVIA expects third-quarter revenues in the range of $3.29-$3.365 billion. The current Zacks Consensus Estimate of $3.25 billion lies below the guidance.

Adjusted earnings per share are expected between $2.06 and $2.13. Adjusted EBITDA is anticipated between $710 million and $730 million.

2021 Guidance

For the full year, IQVIA now expects revenues in the band of $13.55-$13.7 billion compared with the prior projection of $13.2-$13.5 billion. The current Zacks Consensus Estimate of $13.44 billion is lower than the updated view.

Adjusted earnings per share are expected between $8.70 and $8.90 compared with the prior forecast of $8.50-$8.75. The current Zacks Consensus Estimate of $8.69 falls short of the revised outlook.

Adjusted EBITDA is anticipated between $2.950 billion and $3 billion compared with the prior prediction of $2.900-$2.965 billion.

Currently, IQVIA carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Business Services Companies

Equifax’s EFX second-quarter 2021 adjusted earnings of $1.98 per share beat the Zacks Consensus Estimate by 15.8% and improved on a year-over-year basis. Revenues of $1.23 billion outpaced the consensus estimate by 6.4% and rose 26% year over year on a reported basis and 23% on a local-currency basis.

Robert Half’s RHI second-quarter 2021 earnings of $1.33 per share beat the consensus mark by 26.7% and were up more than 100% year over year. Revenues of $1.6 billion surpassed the consensus mark by 6.5% and surged 42.3% year over year on a reported basis and 40% on an adjusted basis.

ManpowerGroup’s MAN second-quarter 2021 adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and soared above 100%. Revenues of $5.28 billion beat the consensus mark by 2% and jumped 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.


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