Healthcare Analytics Solutions Provider IQVIA Cuts Annual Forecast, Sees Demand Slowing For Services

IQVIA Holdings Inc IQV reported Q3 sales of $3.74 billion, up 4.9% Y/Y on a reported basis and 4.1% at constant currency (CC), missing the consensus of $3.78 billion.

IQVIA reported Q3 adjusted EPS of $2.49, beating the consensus of $2.44.

Technology & Analytics Solutions revenue increased 2.2% (0.9% CC) to $1.43 billion. 

Research & Development Solutions (R&DS) sales reached $2.12 billion, +7.2% (6.4% CC). 

Contract Sales & Medical Solutions revenue was flat on a reported basis (up 4.9% at CC) to $183 million.

As of September 30, 2023, R&DS contracted backlog, including reimbursed expenses, was $28.8 billion, growing 11.7% year-over-year and 10.5% at constant currency. 

The company expects approximately $7.4 billion of this backlog to convert to revenue in the next twelve months. The third-quarter book-to-bill ratio was 1.24x.

FY23 Guidance: The company updated its full-year guidance to reflect slower growth in the Technology & Analytics Solutions segment and the impact of the strengthening US dollar. 

IQVIA forecasts FY23 adjusted EPS of $10.16-$10.23 versus prior guidance of $10.20-$10.45 and consensus Of $10.29.

The company sees FY23 revenue of $14.885-$14.92 billion compared to the prior guidance of $15.05-$15.175 billion and consensus of $15.12 billion.

Q4 FY23 Guidance: IQVIA anticipates revenue of $3.769-$3.804 billion and adjusted EPS of $2.79-$2.86 compared to the consensus of $3.96 billion and $2.94, respectively.

Price Action: IQV shares are down 4.98% at $171.82 on the last check Wednesday.