IQVIA (IQV) to Report Q2 Earnings: What’s in the Offing?

IQVIA Holdings, Inc. IQV is scheduled to release its second-quarter 2023 results on Aug 1, before the market open.

IQV has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in all the four trailing quarters, the average surprise being 2.2%.

Q2 Expectations

The Zacks Consensus Estimate for the top line is currently pegged at $3.7 billion, up 4.6% from the year-ago actual figure. The company’s diversification of business on the basis of cycle length is likely to have helped its revenues.

IQVIA Holdings Inc. Price and EPS Surprise

IQVIA Holdings Inc. price-eps-surprise | IQVIA Holdings Inc. Quote

The consensus estimate for earnings per share is pegged at $2.37, down 2.9% year over year. Increased costs are likely to have weighed on the company’s bottom line.

Segmental Expectations

Our estimate for second-quarter 2023 revenues from the Technology and Analytics segment is currently pegged at $1.46 billion, up 3.9% from the second-quarter 2022 reported figure. The uptick is likely to have been due to increased deployment activities.

Our estimate for the Research and Development segment’s revenues is currently pegged at $2.04 billion, 4.5% higher than the year-ago reported figure. The growth is likely to have been due to the expected continuation of the healthy demand situation. Our estimate for Contract sales and Medical solutions’ revenues is pegged at $185.8 million, 1.5% higher than the year-ago figure.

Our estimate for adjusted EBITDA for the second quarter is pegged at $852.9 million, indicating 6.6% growth from the year-ago figure.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for IQV this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

IQV has an Earnings ESP of -0.85% and a Zacks Rank #4 (Sell).

Stocks to Consider

Here are a few stocks from the broader Business Services sector, which according to our model, have the right combination of elements to beat on earnings this season.

Aptiv APTV currently has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the bottom line is pegged at $1.03 per share, up more than 100% from the year-ago figure. The consensus mark for revenues is pegged at $4.72 billion, up 16.5% from the figure reported a year ago. APTV had an average negative surprise of 8.1% in the previous four quarters.

APTV has an Earnings ESP of +4.37. The company is scheduled to release its second-quarter earnings on Aug 3.

SoFi Technologies SOFI currently has a Zacks Rank of 3. The Zacks Consensus Estimate for the bottom line is pegged at a loss of 7 cents per share. In the previous year quarter, the company reported a loss of 12 cents per share. The consensus mark for revenues is pegged at $474.6 million, up 30.9% from the prior-year reported figure. SOFI had an average surprise of 23% in the previous four quarters.

SOFI has an Earnings ESP of +2.37. The company is slated to declare its second-quarter results on Jul 31.

Trane Technologies TT currently has a Zacks Rank of 2. The Zacks Consensus Estimate for the bottom line is pegged at $2.55 per share, up 18.1% from the year-ago reported figure. The consensus mark for revenues is pegged at $4.62 billion, up 10.4% from the prior-year reported figure. TT had an average surprise of 6.7% in the previous four quarters.

TT has an Earnings ESP of +1.20. The company is scheduled to declare its second-quarter results on Aug 2.

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