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Durham, North Carolina-based IQVIA Holdings Inc. (IQV) provides healthcare research services. Valued at $35.8 billion by market cap, the company offers analytics, technology solutions, and clinical research services to the life sciences industry which helps them in the clinical development and commercialization of medical treatments that improve healthcare outcomes for patients. The contract research giant is expected to announce its fiscal fourth-quarter earnings for 2024 on Wednesday, Feb. 12.
Ahead of the event, analysts expect IQV to report a profit of $2.87 per share on a diluted basis, up 8.3% from $2.65 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect IQV to report EPS of $10.25, up 10.5% from $9.28 in fiscal 2023. Its EPS is expected to rise 6.8% year over year to $10.95 in fiscal 2025.
IQV stock has underperformed the S&P 500’s ($SPX) 26.5% gains over the past 52 weeks, with shares down 6.4% during this period. Similarly, it underperformed the Health Care Select Sector SPDR Fund’s (XLV) marginal gains over the same time frame.
IQVIA's recent underperformance can be attributed to its challenges in adapting to the rapidly changing healthcare market and facing tough competition in the data analytics industry. Furthermore, delays in two major trials have also contributed to the company's struggles in the market.
On Oct. 31, IQV shares closed down more than 4% after reporting its Q3 results. Its adjusted EPS of $2.84 topped Wall Street expectations of $2.81. The company’s revenue was $3.90 billion, beating Wall Street forecasts of $3.85 billion. IQVIA expects full-year adjusted EPS in the range of $11.10 to $11.20, and revenue to be between $15.35 billion and $15.40 billion.
Analysts’ consensus opinion on IQV stock is bullish, with a “Strong Buy” rating overall. Out of 21 analysts covering the stock, 17 advise a “Strong Buy” rating, two suggest a “Moderate Buy,” and three give a “Hold.” IQV’s average analyst price target is $248.96, indicating a potential upside of 26.1% from the current levels.
