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Durham, North Carolina-based IQVIA Holdings Inc. (IQV) provides advanced analytics, technology solutions, and clinical research services to the life sciences industry. It operates through Technology & Analytics Solutions (TAS), Research & Development Solutions (RDS), and Contract Sales & Medical Solutions (CSM) segments. With a market cap of $43.1 billion, IQVIA’s operations span the Americas, Europe, Africa, and the Indo-Pacific. It is expected to release its Q3 earnings before the market opens on Thursday, Oct. 31.
Ahead of the event, analysts expect IQVIA to report a profit of $2.57 per share, up 12.2% from $2.29 per share reported in the year-ago quarter. The company has surpassed Wall Street’s adjusted EPS projections in each of the past four quarters. Its adjusted EPS for the last reported quarter grew 9.9% year-over-year to $2.44, exceeding the consensus estimates by 3.4%.
For fiscal 2024, analysts expect IQVIA to report an adjusted EPS of $10.25, up 10.5% from $9.28 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 10.8% year-over-year to $11.36.
IQV is up 2.3% on a YTD basis, substantially underperforming the S&P 500 Index’s ($SPX) 23% gains and the Health Care Select Sector SPDR Fund’s (XLV) 12.3% returns during the same time frame.
Shares of IQVIA surged 9.2% after the release of its impressive Q2 earnings on Jul. 22. The company reported a substantial 2.3% year-over-year growth in revenues, reaching $3.8 billion, exceeding Wall Street’s topline expectations. Although its CSM segment struggled a bit, its TAS and RDS segments showcased commendable resilience. The ATS segment posted a revenue growth of 2.7% year-over-year to $1.5 billion while the RDS segment’s revenue grew by 2.4% to $2.1 billion compared to the year-ago quarter.
Additionally, IQVIA’s net income grew by a massive 22.2% year-over-year, totaling $363 million, surpassing analyst expectations. Observing the growth in profitability during the first half of the year, the company raised its full-year adjusted EPS guidance from previously announced $10.95 - $11.25 to $11.10 - $11.30.
The consensus opinion on IQV stock is bullish, with an overall “Strong Buy” rating. Out of the 21 analysts covering the stock, 16 recommend “Strong Buy,” two advise “Moderate Buy,” and three suggest a “Hold” rating. The mean price target of $274.85 represents a potential upside of 16.1% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
