IQVIA Holdings Inc. (NYSE:IQV) is scheduled to report Q3 earnings results before markets open for trading on October 20, 2020.
The company is expected to report earnings of $1.52/share on revenue of $2.75 billion. The consensus earnings per share (EPS) of $1.52/share is based on a poll of 20 analysts and represents a decline in eps of −5.1% over the same quarter last year, when the company reported earnings of $1.60/share.
The revenue forecast of $2.75 billion based on a poll of 18 analysts implies a year-over-year (YoY) decline in revenue of −0.7%. Last year the company reported $2.769 billion in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $2,750.24 | $2,769.00 | −0.7% |
| EPS | $1.52 | $1.60 | −5.1% |
Earnings Call Trends
Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.
What are your expectations from IQVIA Holdings Inc. for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q2, 2020 | $1.06 | $1.18 | 11.7% | Beat |
| Q1, 2020 | $1.49 | $1.50 | 0.8% | Beat |
| Q4, 2019 | $1.72 | $1.74 | 1.1% | Beat |
| Q3, 2019 | $1.57 | $1.60 | 1.7% | Beat |
| Q2, 2019 | $1.49 | $1.53 | 2.5% | Beat |
| Q1, 2019 | $1.51 | $1.53 | 1.5% | Beat |
| Q4, 2018 | $1.47 | $1.50 | 1.9% | Beat |
| Q3, 2018 | $1.39 | $1.42 | 2.2% | Beat |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 2.9%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| July 22, 2020 | $156.95 | $161.48 | 2.9% | Increase |
| April 28, 2020 | $131.88 | $143.10 | 8.5% | Increase |
| February 12, 2020 | $161.70 | $165.79 | 2.5% | Increase |
| October 30, 2019 | $150.09 | $144.42 | −3.8% | Decline |
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.78, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.78 implies a 0.3% chance of earnings manipulation.
Fundamentals And Technical Analysis
IQVIA Holdings Inc. is currently trading at $165.84/share, up 0.8% for the day. The company is trading at approximately 96.2% of its 52-week high of $171.88/share. The company’s stock price is up 2.7% since the last earnings report and down −2.7% over the previous week.
The company’s 14 Day Relative Price Index (RSI) of 54.27 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of 240.31 and a forward P/E multiple of 25.60.
IQVIA Holdings Inc.’s current share price also implies a price-to-book (P/B) multiple of 5.67. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Reported Fiscal Period Key | FY2020.Q2 |
| Period End Date | June 30, 2020 |
| Stock Price (Current) | $165.84 |
| P/E Ratio | 240.3x |
| P/E Ratio (Fwd) | 25.6x |
| PEG Ratio | −5.3 |
| Total Debt / Total Capital | 28.8% |
| Levered Free Cash Flow | $979 million |
| EV / EBITDA | 24.6x |
IQVIA Holdings Inc. is a large-cap stock with a market capitalization of $31.476 billion and a total enterprise value of $43.4 billion. The company operates in the Healthcare sector and the Life Sciences Tools & Services industry.
IQVIA Holdings Inc. provides advanced analytics, technology solutions, and contract research services to the life sciences industry in the Americas, Europe, Africa, and the Asia-Pacific. It operates through three segments: Technology & Analytics Solutions, Research & Development Solutions, and Contract Sales & Medical Solutions. The Technology & Analytics Solutions segment offers a range of cloud-based applications and related implementation services; real world solutions; and strategic and implementation consulting services, such as advanced analytics and commercial processes outsourcing services. This segment also provides country level performance metrics related to sales of pharmaceutical products, prescribing trends, medical treatment, and promotional activity across various channels, including retail, hospital, and mail order; and measurement of sales or prescribing activity at the regional, zip code, and individual prescriber level. The Research & Development Solutions segment offers project management and clinical monitoring; clinical trial support services; and strategic planning and design services, as well as clinical trial, genomic, bioanalytical, ADME, discovery, vaccine and biomarker laboratory services. The Contract Sales & Medical Solutions segment provides health care provider and patient engagement services, and scientific strategy and medical affairs services. The company has a strategic alliance with ACCORD-2 to provide single research platform to speed development of new COVID-19 treatments. IQVIA Holdings Inc. serves pharmaceutical, biotechnology, device and diagnostic, and consumer health companies. The company was formerly known as Quintiles IMS Holdings, Inc. and changed its name to IQVIA Holdings Inc. in November 2017. IQVIA Holdings Inc. was founded in 1982 and is headquartered in Durham, North Carolina.
