Syneos Health, Inc. (SYNH) Tops Q4 EPS by 2c, Revenues Beat; Offers FY20 EPS Guidance

Syneos Health, Inc. (NASDAQ: SYNH) reported Q4 EPS of $1.03, $0.02 better than the analyst estimate of $1.01. Revenue for the quarter came in at $1.21 billion versus the consensus estimate of $1.19 billion.

Highlights

• GAAP revenue of $1,213.0 million and $4,675.8 million for the three and twelve months ended December 31, 2019, representing growth of 5.9% and 6.5% compared to the same periods in 2018, respectively.
• Adjusted revenue of $1,214.5 million and $4,682.2 million for the three and twelve months ended December 31, 2019, representing growth of 5.8%, or 6.0% on a constant currency basis, and 6.3%, or 7.2% on a constant currency basis, compared to the same periods in 2018, respectively.
• Net new business awards of $1,793.2 million and $5,453.6 million for the three and twelve months ended December 31, 2019, representing a book-to-bill ratio of 1.48x and 1.16x, respectively.
  • Clinical Solutions segment net new business awards of $1,312.0 million and $4,148.0 million for the three and twelve months ended December 31, 2019, representing a book-to-bill ratio of 1.46x and 1.21x, respectively.
  • Commercial Solutions segment net new business awards of $481.2 million and $1,305.6 million for the three and twelve months ended December 31, 2019, representing a book-to-bill ratio of 1.53x and 1.04x, respectively.
• GAAP diluted earnings per share of $0.86 and $1.25 for the three and twelve months ended December 31, 2019, respectively.
• Adjusted diluted earnings per share of $1.03 and $3.23 for the three and twelve months ended December 31, 2019, representing growth of 8.4% and 12.5%, respectively.
• Adjusted EBITDA of $188.6 million and $645.2 million for the three and twelve months ended December 31, 2019, representing growth of 9.0% and 8.0% compared to the same periods in 2018, respectively.
• Repaid $67.0 million of term loan debt, resulting in a net leverage ratio of 3.9x, and redeemed the $400.0 million of 7.5% Senior Unsecured Notes during the three months ended December 31, 2019.
• Reaffirming full-year 2020 guidance: revenue of $4,880.0 million to $5,000.0 million, adjusted EBITDA of $680.0 million to $720.0 million, and adjusted diluted earnings per share of $3.58 to $3.78.

“During the fourth quarter, we realized strong net awards in both our Clinical and Commercial segments, reinforcing our unique, integrated value proposition,” said Alistair Macdonald, Chief Executive Officer, Syneos Health. “Our Clinical Solutions segment closed the year strongly, returning to market level growth for the year while expanding profitability, and our Commercial segment experienced record awards. We continue to realize strong customer engagement across the model, including a record new business pipeline in Clinical Solutions at the start of 2020, and are well positioned to accelerate the delivery of our customers’ therapies worldwide."

GUIDANCE:

Syneos Health, Inc. sees FY2020 EPS of $3.58-$3.78, versus the consensus of $3.65.

For earnings history and earnings-related data on Syneos Health, Inc. (SYNH) click here.

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