IQVIA Gears Up to Report Q1 Earnings: What's in Store for the Stock?

Zacks
05-01

IQVIA Holdings Inc. IQV will release its first-quarter 2025 results on May 6, before market open.

IQV has a decent earnings surprise history, having surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 1.7%.

IQVIA Holdings Inc. Price, Consensus and EPS Surprise

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

IQVIA’s Q1 Expectations

The Zacks Consensus Estimate for revenues is pegged at $3.8 billion, increasing marginally on a year-over-year basis.

Research and Development Solutions (R&DS) revenues are expected to be $2.1 billion, hinting at a 1.6% rise from the year-ago reported figure. New partnerships and the launch of the latest treatments are expected to have fueled this segment’s revenue growth.

Our estimate for revenues from Technology and Analytics Solutions (TAS) is pegged at $1.5 billion, indicating a 1% rise on a year-over-year basis. Robust demand for integrated solutions that combine information, analytics and services is likely to have improved the segment’s revenues.

Our estimate for Contract sales and Medical solutions’ revenues is pegged at $192 million, implying 1.8% growth from the year-ago quarter’s actual.

The consensus estimate for earnings per share is pegged at $2.63, suggesting 3.5% year-over-year growth.

Our estimate for the first quarter’s adjusted EBITDA is pegged at $886.6 million, suggesting 2.9% year-over-year growth. A strong top line and price discipline are expected to have driven the bottom line.

What Our Model Says About IQV

Our proven model does not conclusively predict an earnings beat for IQVIA 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 is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

IQV has an Earnings ESP of -0.27% and a Zacks Rank of 4 (Sell) at present.

Stocks to Consider

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

Novo Nordisk NVO: The Zacks Consensus Estimate for the company’s first-quarter 2025 revenues is pegged at $11.3 billion, suggesting growth of 19.1% from the year-ago quarter’s actual. For earnings, the consensus mark is pegged at 91 cents per share, indicating a 9.6% year-over-year rise. NVO beat the consensus estimate in the past two of the four quarters and missed in the remaining two, with an average earnings surprise of 1.9%.

NVO has an Earnings ESP of +0.28% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is scheduled to declare its first-quarter 2025 results on May 7. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Pacira BioSciences, Inc. PCRX: The Zacks Consensus Estimate for the company’s first-quarter 2025 revenues is pegged at $174.9 million, indicating year-over-year growth of 4.7%. For earnings, the consensus mark is pegged at 57 cents per share, suggesting an 8.1% decline from the year-ago quarter’s reported figure. The company beat the consensus estimate in three of the past four quarters and missed once, with an average surprise of 8.6%.

PCRX carries an Earnings ESP of +34.51% and a Zacks Rank of 3 at present. The company is scheduled to declare its first-quarter 2025 results on May 8.

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This article originally published on Zacks Investment Research (zacks.com).

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