July 23, 2024

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Healthcare Analytics-Focused IQVIA Says 2023 Performance Solid Despite Challenging Macro Environment By Benzinga

2 min read

© Reuters. Healthcare Analytics-Focused IQVIA Says 2023 Performance Solid Despite Challenging Macro Environment

Benzinga – by Vandana Singh, Benzinga Editor.

IQVIA Holdings Inc (NYSE:IQV) reported fourth-quarter 2023 sales of $3.87 billion, up 3.5% Y/Y on a reported basis and 2.6% at constant currency (CC), beating the management guidance of $3.769 billion-$3.804 billion and the consensus of $3.79 billion.

IQVIA reported adjusted EPS of $2.84 compared to the management guidance of $2.79-$2.86, beating the consensus of $2.82.

Technology & Analytics Solutions revenue increased 2.1% (1.3% CC) to $1.53 billion. Research & Development Solutions (R&DS) sales reached $2.15 billion, +4.5% (3.7% CC).

Contract Sales & Medical Solutions revenue reached $186 million, up 2.2% (+1.7% at CC).

As of December 31, 2023, R&DS contracted backlog, including reimbursed expenses, was $29.7 billion, growing 9.2% Y/Y and 8.8% at constant currency.

The company expects approximately $7.5 billion of this backlog to convert to revenue in the next twelve months. The fourth-quarter book-to-bill ratio was 1.31x.

“The IQVIA team delivered solid 2023 results in a challenging macro environment,” said Ari Bousbib, chairman and CEO of IQVIA. “The TAS segment continued to grow despite persistent client caution and lower spending levels. In R&DS, clinical demand remained strong, with double-digit RFP growth and a 1.31 book-to-bill ratio for the quarter. As we begin 2024, the fundamentals of our business and the outlook for our end markets remain healthy.”

Guidance: IQVIA forecasts fiscal year 2024 revenue of $15.4 billion-$15.65 billion versus the consensus of $15.60 billion.

The revenue guidance assumes approximately $300 million of COVID-related revenue step down, about 50 basis points of headwind from foreign exchange, and about 100 basis points of contribution from acquisitions.

The company expects fiscal year 2024 adjusted EPS of $10.95-$11.25 versus a consensus of $11.08.

The company expects 2024 adjusted EBITDA to be between $3.7 billion-$3.8 billion.

Price Action: IQV shares are up 9.79% at $236.35 on the last check Wednesday.

Image: Shutterstock/ REDPIXEL.PL

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga


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