IQVIA Report Shows Strong Earnings and Revenue Growth in Q3 2024

IQVIA Holdings Analytics Inc. (IQV - Free Report) has delivered remarkable results for the third quarter of 2024, surpassing earnings and revenue expectations outlined by analysts.

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For the third quarter, adjusted earnings reached $2.8 per share, which exceeded the Zacks Consensus Estimate by 1.1%. This figure is also a 14.1% increase compared to the same period last year. The company’s total revenues stood at $3.9 billion, also beating the consensus estimate by 1.1%, marking a year-over-year growth of 4.3%.

Over the past year, IQV’s stock has risen by 20%, although this is lower than the 30% increase seen in its industry and the 39.8% growth of the Zacks S&P 500 Composite.

Performance Overview

The Research and Development segment generated revenues of $2.2 billion, reflecting a year-over-year increase of 1.9%. When adjusted for constant currency, this segment’s growth was recorded at 2%, aligning with our estimates.

Meanwhile, the Technology and Analytics segment reported revenues of $1.6 billion, an 8.6% increase from the same quarter last year. This performance outperformed our projected revenue of $1.5 billion, and the constant-currency growth rate stood at 8.2%.

However, revenues from Contract Sales & Medical Solutions saw a decline, dropping by 1.6% year-over-year to $180 million. This figure slightly missed our expectation of $182.9 million, but it registered a 1.1% increase on a constant currency basis.

In terms of overall profitability, adjusted EBITDA for Q3 2024 amounted to $939 million, which is a 5.7% improvement from the year-ago quarter and slightly higher than our estimate of $938.6 million.

By the end of the quarter, IQVIA held cash and cash equivalents totaling $1.6 billion, an increase from $1.5 billion at the end of the previous quarter. The company’s long-term debt (excluding the current portion) also rose to $12.3 billion from $12.1 billion.

In terms of cash flow, IQVIA generated $721 million from operating activities and recorded capital expenditures of $150 million, leading to a free cash flow of $571 million for the quarter.

Revised Guidance for 2024

IQVIA has adjusted its revenue guidance for 2024, now estimating total revenues to be within the range of $15.35 billion to $15.40 billion. This is a decrease from the previous forecast of $15.43 billion to $15.53 billion, and the Zacks Consensus Estimate stands at $15.46 billion, which is higher than IQV’s revised guidance.

Furthermore, the estimated range for adjusted EPS has been updated to $11.10 to $11.20 from an earlier figure of $11.10 to $11.30. The midpoint of the adjusted EPS guidance is $11.15, which is slightly below the Zacks consensus estimate of $11.17. Additionally, IQVIA lowered its projected adjusted EBITDA range to $3.67 billion to $3.70 billion from the previously stated $3.71 billion to $3.77 billion.

Currently, IQVIA holds a Zacks Rank of #3 (Hold).

Competitors’ Earnings Updates

Republic Services, Inc. (RSG - Free Report) released mixed results for Q3 2024, with earnings per share (excluding non-recurring items) standing at $1.8, surpassing the Zacks Consensus Estimate by 11.7% and reflecting a year-over-year increase of 17.5%. However, revenues of $4.1 billion fell short of consensus expectations, although they still marked a 6.5% annual rise.

TransUnion (TRU - Free Report) reported strong results as well, with adjusted earnings of $1 per share, exceeding expectations by 2% and showcasing a 14.3% year-over-year improvement. Total revenues of $1.1 billion also outperformed the consensus estimate by 2.2%, with a year-over-year growth of 12%.

IQVIA, Earnings, Revenue