IQVIA Holdings: Anticipated Earnings Report and Analyst Sentiments
Durham, North Carolina-based IQVIA Holdings Inc. (IQV) is a leader in healthcare research services. With a market value of $35.8 billion, the company provides analytics, technology solutions, and clinical research services that support life sciences in developing and marketing medical treatments. IQVIA, known as a contract research powerhouse, is set to reveal its fiscal fourth-quarter earnings for 2024 on Wednesday, Feb. 12.
Earnings Expectations: A Positive Outlook?
Analysts predict that IQV will announce earnings of $2.87 per share on a diluted basis, marking an 8.3% increase from $2.65 per share in the same quarter last year. Notably, the company has exceeded Wall Street’s earnings per share (EPS) estimates in its last four quarterly reports.
Full-Year and Future Projections
For the entire fiscal year 2024, analysts expect IQV to report an EPS of $10.25, which represents a 10.5% increase from $9.28 in fiscal 2023. Furthermore, the EPS is anticipated to rise by 6.8% year over year to $10.95 in fiscal 2025.
Stock Performance: A Tough Year
Over the past 52 weeks, IQV stock has lagged behind the S&P 500’s ($SPX) 26.5% growth, with IQV shares decreasing by 6.4% during this time. The stock also underperformed compared to the Health Care Select Sector SPDR Fund’s (XLV) modest gains within the same period.
Challenges Facing IQVIA
The underperformance of IQVIA can be linked to the company’s difficulties in keeping pace with the fast-evolving healthcare market and increasing competition in the data analytics field. Additionally, delays in two major clinical trials have further hindered its market performance.
Recent Financial Results
On Oct. 31, IQV shares fell over 4% following the release of its Q3 results. However, its adjusted EPS of $2.84 surpassed Wall Street’s estimate of $2.81. The company reported revenue of $3.90 billion, exceeding forecasts of $3.85 billion. For the full year, IQVIA anticipates adjusted EPS between $11.10 and $11.20, with revenue expected to fall between $15.35 billion and $15.40 billion.
Analysts’ Recommendations: A Confident Stance
Despite recent challenges, analysts hold a generally positive view of IQV stock. The consensus rating is a “Strong Buy,” with 17 out of 21 analysts recommending this option, two suggesting a “Moderate Buy,” and three advising a “Hold.” The average price target set by analysts is $248.96, indicating a possible upside of 26.1% from current levels.
On the date of publication,
Neha Panjwani
did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
