IQVIA (NYSE:IQV) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

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.

Expected to report EPS contraction of −5.1% for Q3, 2020
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!

Analyst Expected vs. Reported EPS
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%.

Stock Price Performance After Earnings
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.


NYSE:IQV Stock Price Chart
Source: Finbox

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:

Data as of October 19, 2020
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

Finbox

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.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.