Company Reports

IQVIA reported first-quarter results in line with our expectations. Total quarterly revenue of $3.7 billion represented 2.3% growth versus the prior year. Investors sent shares down nearly 5% on the news of a cancellation of a significant central nervous system program comprising about $250 million of IQVIA's backlog. As a result, the first-quarter book/bill ratio was 1.23 times, which is down from 1.31 times in the fourth quarter of 2023. Excluding this cancellation, IQVIA's book/bill ratio would have been over 1.3 times. We are not too concerned about this cancellation, as it appears to be an outlier compared with typical cancellations in the range of $15 million-$20 million. We maintain our fair value estimate of $250 per share. Shares are currently trading at an 11% discount to our fair value estimate.

IQVIA (formerly QuintilesIMS) is the result of the merger of Quintiles, a leading late-stage contract research organization, and IMS Health, a dominant player in life sciences data and analytics. The combined company has become a leader among CROs and in the life sciences data and analytics industry. Further, as a result of the merger, the company leads in real-world evidence, in which data from sources such as patient records or medical claims can be used to create clinical evidence for regulatory approval.

IQVIA reported strong year-end results highlighted by revenue of $14.9 billion, representing 4% growth versus the prior year. Despite a challenging macroeconomic environment, demand for IQVIA’s clinical research services remains resilient. Investors reacted favorably, sending the stock up 12% based on the quarter’s solid results, healthy backlog, net new business, and positive outlook for 2024. We maintain our fair value estimate of $250 per share, and we now view shares as fairly valued as they have moved into 3-star territory.

IQVIA reported third-quarter results highlighted by revenue of $3.7 billion, representing a nearly 5% increase versus the prior year. We maintain our fair value estimate of $250 per share, and we view the stock as undervalued, currently trading in 4-star territory about 26% below our fair value estimate.

IQVIA reported second-quarter results highlighted by revenue of $3.7 billion, representing a 5.3% increase versus the prior year. Continued client cautiousness due to uncertain macroeconomic conditions has affected sales for IQVIA's technology and analytics segment and contract sales and medical solutions segment. As a result, management trimmed its 2023 outlook, and we lowered our fair value estimate to $250 per share from $268 to reflect reduced discretionary spending in the near term. The stock is currently trading in 4-star territory about 12% below our fair value estimate.

IQVIA (formerly QuintilesIMS) is the result of the merger of Quintiles, a leading late-stage contract research organization, or CRO, and IMS Health, a dominant player in life sciences data and analytics. The combined company has become a leader among CROs and in the life sciences data and analytics industry. Further, as a result of the merger, the company leads in real-world evidence, in which data from sources such as patient records or medical claims can be used to create clinical evidence for regulatory approval.

Narrow-moat IQVIA reported solid first-quarter results highlighted by revenue over $3.6 billion, representing a 2.4% increase versus the prior year. Strong outsourcing demand continues to drive growth for IQVIA’s research and development solutions segment. We maintain our fair value estimate of $268 per share, and shares currently trade in 4-star territory about 30% below our fair value estimate.

IQVIA (formerly QuintilesIMS) is the result of the merger of Quintiles, a leading late-stage contract research organization, or CRO, and IMS Health, a dominant player in life sciences data and analytics. The combined company has become a leader among CROs and in the life sciences data and analytics industry. Further, as a result of the merger, the company leads in real-world evidence, in which data from sources such as patient records or medical claims can be used to create clinical evidence for regulatory approval.

Narrow-Moat IQVIA reported solid fourth-quarter results highlighted by revenue of over $3.7 billion and total 2022 revenue of $14.4 billion, growing nearly 4% versus the prior year. IQVIA’s technology and analytics, and research and development solutions businesses have continued to report healthy growth. We maintain our fair value estimate of $268 per share and it’s currently trading in 4-star territory about 15% below our fair value estimate.

IQVIA (formerly QuintilesIMS) is the result of the merger of Quintiles, a leading late-stage contract research organization, or CRO, and IMS Health, a dominant player in life sciences data and analytics. The combined company has become an established leader among CROs and in the life sciences data and analytics industry. Further, as a result of the merger, the company leads in real-world evidence, in which data from sources such as patient records or medical claims can be used to create clinical evidence for regulatory approval.

Narrow-moat IQVIA is experiencing some operational challenges caused by the global macroeconomic environment, including foreign exchange headwinds, wage inflation, ongoing disruptions related to the Ukraine-Russia war, and reoccurring lockdowns in China. Management decreased its 2022 revenue guidance by about 0.7% at the midpoint and lowered 2022 adjusted EBITDA guidance by roughly 0.75% at the midpoint. We have revised our near-term forecasts to account for continued macro disruptions, and we have slightly lowered our fair value estimate to $268 per share, down from $276. Nevertheless, we continue to have a positive overall outlook for IQVIA and it remains well-positioned for long-term growth. The stock is trading at an attractive entry point for long-term investors in 4-star territory.

IQVIA (formerly QuintilesIMS) is the result of the merger of Quintiles, a leading late-stage contract research organization, or CRO, and IMS Health, a dominant player in life sciences data and analytics. The combined company has become an established leader among CROs and in the life sciences data and analytics space. Further, as a result of the merger, the company leads in real-world evidence, in which data from sources such as patient records or medical claims can be used to create clinical evidence for regulatory approval.

IQVIA reported healthy second-quarter results highlighted by revenue of $3.5 billion, representing growth of 3% on a reported basis and over 7% growth at constant currency from the prior-year period. The results were in line with our expectations, and we maintain our fair value estimate of $276. We view the stock as undervalued and it's currently trading at 4 stars. We maintain our narrow moat and stable moat trend.

IQVIA (formerly QuintilesIMS) is the result of the merger of Quintiles, a leading late-stage contract research organization, or CRO, and IMS Health, a dominant player in life sciences data and analytics. The combined company has become an established leader among CROs and in the life sciences data and analytics space. Further, as a result of the merger, the company leads in real-world evidence, in which data from sources such as patient records or medical claims can be used to create clinical evidence for regulatory approval.

IQVIA reported solid first-quarter results highlighted by revenue of $3.6 billion, representing a nearly 5% increase from the prior-year period. IQVIA’s technology and analytics and R&D solutions segments continue to report strong growth. We maintain our fair value estimate of $276 per share and view the stock as currently undervalued, trading in 4-star territory. We also maintain our narrow moat and stable moat trend ratings.

IQVIA (formerly QuintilesIMS) is the result of the merger of Quintiles, a leading late-stage contract research organization, or CRO, and IMS Health, a dominant player in life sciences data and analytics. The combined company has become an established leader among CROs and in the life sciences data and analytics space. Further, as a result of the merger, the company leads in real-world evidence, in which data from sources such as patient records or medical claims can be used to create clinical evidence for regulatory approval.

IQVIA reported strong fourth-quarter results highlighted by revenue of $3.6 billion and total 2021 revenue of $13.9 billion, growing 22% compared with 2020. IQVIA's technology and analytics and R&D Solutions segments have continued to report robust growth as the company has rebounded well from pandemic-related challenges. We maintain our fair value estimate of $276 per share and view the stock as currently undervalued, trading in 4-star territory. We also maintain our narrow moat and stable moat trend ratings.

IQVIA (formerly QuintilesIMS) is the result of the merger of Quintiles, a leading late-stage contract research organization, or CRO, and IMS Health, a dominant player in life sciences data and analytics. The combined company has become an established leader among CROs and in the life sciences data and analytics space. Further, as a result of the merger, the company leads in real-world evidence, in which data from sources such as patient records or medical claims can be used to create clinical evidence for regulatory approval.

IQVIA reported robust third-quarter results highlighted by revenue of $3.4 billion, representing a 22% increase year over year. The company has continued to recover well from pandemic-related challenges, even despite a resurgence of cases from the delta variant. As a result, management raised its guidance for the year. We’ve increased our fair value estimate to $276 per share from $231 because of stronger-than-expected near-term revenue growth. We maintain our narrow moat and stable moat trend ratings.

IQVIA (formerly QuintilesIMS) is the result of the merger of Quintiles, a leading late-stage contract research organization, and IMS Health, a dominant player in life sciences data and analytics. The combined company has become an established leader in both the CRO space and life sciences data and analytics. Further, as a result of the merger, the company leads in real-world evidence, in which data from sources such as patient records or medical claims can be used to create clinical evidence for regulatory approval.