IQVIA Holdings delivers record results in fourth quarter
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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%

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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.”

Disclosure

Dominion holds IQVIA Holdings in its Global Trends Managed Fund.


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