IQVIA Holdings (IQV) recently reported strong second-quarter 2024 results, exceeding both earnings and revenue expectations. Adjusted earnings came in at $2.6 per share, exceeding the Zacks Consensus Estimate by 2.3% and marking a 2.4% year-over-year increase. Total revenue reached $3.8 billion, slightly surpassing the consensus estimate and reflecting a 2.3% year-over-year growth.
The company’s Technology and Analytics segment saw revenue growth of 2.7% year-over-year, reaching $1.5 billion. The Research and Development segment also performed well, with revenue increasing by 2.4% to $2.2 billion. However, Contract Sales & Medical Solutions revenues declined by 2.3% year-over-year to $172 million.
Despite the positive second-quarter results, recent trends in analysts’ estimates suggest a more cautious outlook. While the company raised its adjusted earnings per share (EPS) guidance for 2024 to $11.10-$11.30, there has been a downward trend in estimates over the past month. The magnitude of these revisions is currently net zero.
IQVIA’s Zacks Rank is currently #3 (Hold), suggesting an in-line return for the stock in the coming months. The stock also has a VGM Score of C, which indicates an average performance across Growth, Value, and Momentum factors.
It is important to note that Intuitive Surgical (ISRG), another company in the Zacks Medical – Instruments industry, has experienced a 6.2% gain over the past month. However, this comparison does not necessarily predict IQVIA’s future performance.
Investors should carefully consider the overall market trends, recent earnings performance, and analysts’ estimates before making any investment decisions regarding IQVIA. While the second-quarter results were positive, the recent downward trend in earnings expectations and the overall cautious outlook warrant a more nuanced approach.
