IQVIA (IQV) Surpasses Earnings & Revenue Estimates in Q2

Company Performance - IQV stock has gained 5.2% over the past six months, outperforming the industry rally of 2.9% [1] - IQVIA Holdings Analytics Inc. reported impressive second-quarter 2024 results, with earnings and revenues surpassing the Zacks Consensus Estimate [12] - Adjusted earnings were $2.6 per share, exceeding the Zacks Consensus Estimate by 2.3% and increasing 2.4% year-over-year [6] - Total revenues reached $3.8 billion, slightly surpassing the consensus estimate and rising 2.3% from the previous year [6] - Adjusted EBITDA for the second quarter was $887 million, indicating a 12.7% growth from the year-ago quarter [8] Revenue Segments - Research and Development segment revenues were $2.2 billion, increasing 2.4% from the year-ago quarter and 3.3% on a constant-currency basis, surpassing the estimate of $2.1 billion [2] - Technology and Analytics segment revenues were $1.5 billion, increasing 2.7% from the second quarter of 2023, meeting the estimate and increasing 3.8% on a constant-currency basis [7] - Contract Sales & Medical Solutions revenues declined 2.3% year-over-year to $172 million, missing the estimate of $177 million but increasing 2.8% on a constant-currency basis [13] Financial Position - The company exited the quarter with cash and cash equivalents of $1.5 billion, up from $1.4 billion at the end of the previous quarter [3] - Long-term debt decreased to $12.1 billion from $12.8 billion at the end of the first quarter of 2024 [3] - Net cash generated from operating activities was $588 million, with capital expenditure of $143 million, resulting in a free cash flow of $445 million for the quarter [14] Guidance - For 2024, IQV updated its revenue guidance to $15.43-$15.53 billion, with the mid-point of $15.48 billion higher than the Zacks Consensus Estimate of $15.44 billion [4] - The adjusted EPS guidance was raised to $11.10-$11.30, compared to the previous range of $10.95-$11.25, with the Zacks Consensus Estimate at $11.07 [15] - The updated guided range for adjusted EBITDA is anticipated to be $3.71-$3.77 billion, compared to the previous range of $3.70-$3.80 billion [15]