IQVIA Holdings delivers record results in fourth quarter
IQVIA Holdings (IQVIA), the contract research giant that feeds healthcare-and-related industries’ ever-increasing demand for data, reported earnings at the end of last week that finished 2018 with a bang. IQVIA broke its own records and beat the Street’s predictions, once more turning single-digit revenue gains into double-digit earnings increases. That shows two things: the company is still finding room to grow significantly, and it’s becoming increasingly profitable as it does so. For investors, that’s very good news – a fact which is being reflected in its share price.
So far this year, IQVIA Holdings’ share price has increased by 25%
Source: Yahoo Finance
IQVIA reported a 6.6% increase in revenue, year on year, to $2.69 billion. And the company was able to turn that into bigger wins when it came to the bottom line: adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by 10.8% to $583 million, adjusted net income increased 18% to $307 million, and adjusted earnings per share soared by 23% to $1.50. All these figures are reported against the comparable ones from the fourth quarter of 2017.
The company’s fourth quarter was the perfect end to a strong year overall, which saw revenue increase by 7% to $10.4 billion and adjusted EBITDA grow by 11% to $2.2 billion, both reported in a year on year basis. Over the full twelve months, IQVIA saw strong results from every division of the business, and it finishes 2018 with a $17 billion Research and Development Solutions (RDS) backlog.
Ari Bousbib, the company’s chairman and CEO, summed up the company’s positive year, and noted that the future looked bright. On IQVIA’s earnings call, he said: “commentary from our client base remains healthy. Pharma is bullish on the science, innovative research and current clinical research programs. Our clients continue to drive SG&A efficiencies, through increased commercial outsourcing to allow for growth in R&D funding. Our clients also acknowledge that pricing is under scrutiny on the commercial side, but they currently don't anticipate this will become a major disruptor to their clinical development initiatives. Taken together, it's clear, this is a very compelling backdrop for the industry and IQVIA is better positioned than ever to capitalize on these dynamics.”
Dominion holds IQVIA Holdings in its Global Trends Managed Fund.
If you would you like to receive the Newsfeeds daily, please click here to sign up now!Help us make this Newsfeed better by rating this article. 1 star = Poor and 5 stars = Excellent
- Click here to print this story: Print
The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.