IQVIA raises annual profit forecast on improving demand for analytics services
July 22 (Reuters) -Contract research firm IQVIA Holdings IQV.N raised its forecast for full-year profit on Monday, banking on strength in demand for its healthcare data and analytics services.
Technological and analytical solutions (TAS), IQVIA's second-largest unit, reported a 2.7% rise in second-quarter revenue to $1.50 billion, above estimates of $1.47 billion, according to LSEG data. The unit provides information and technology services to pharmaceutical and consumer health companies.
The performance of TAS in the quarter "provides a smoother path to our full-year total company and segment targets," said IQVIA CEO Ari Bousbib.
The results point to an improving demand environment, said Evercore ISI analyst Elizabeth Anderson.
For at least the past two years elevated interest rates had squeezed funding among biotech clients prompting them to put some drug development programs on the backburner.
Leerink analyst Michael Cherny said, the brokerage isencouraged that large pharma clinical trial activity appears to be strong, with demand for TAS not deteriorating further.
Durham, North Carolina-based IQVIA expects 2024 adjusted profit per share between $11.10 and $11.30, up from its prior range of $10.95 to $11.25 per share, and average analyst estimates of $11.08 per share.
Revenue from the research and development solutions segment — IQVIA's largest — came in at $2.15 billion for the quarter ended June 30, compared with analysts' expectation of $2.16 billion.
The unit's book-to-bill ratio, which represents the number of orders received to those fulfilled, was 1.27x, compared with 1.23x in the first quarter of 2024.
IQVIA narrowed its forecast for full-year revenue. It now expects revenue between $15.43 billion and $15.53 billion, versus its prior forecast of $15.33 billion to $15.58 billion. Analysts are expecting $15.46 billion.
The company's quarterly revenue rose 2.3% to $3.81 billion, compared with analysts' expectation of $3.79 billion.
IQVIA posted an adjusted profit of $2.64 per share for the reported quarter, above analysts' average estimate of $2.57 per share.
Reporting by Vaibhav Sadhamta; Editing by Shailesh Kuber
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