Syneos Health, Inc. (SYNH) Tops Q1 EPS by 6c, Revenues Beat

Syneos Health, Inc. (NASDAQ: SYNH) reported Q1 EPS of $0.68, $0.06 better than the analyst estimate of $0.62. Revenue for the quarter came in at $1.16 billion versus the consensus estimate of $1.14 billion.

Highlights

• GAAP revenue of $1,163.4 million for the three months ended March 31, 2020, representing growth of 4.0%, 3.8% on an adjusted basis, and 4.4% on a constant currency adjusted basis compared to the same period in 2019.
• Net new business awards of $1,531.6 million and $5,724.7 million for the three and twelve months ended March 31, 2020, representing a book-to-bill ratio of 1.32x and 1.21x, respectively.
  • Clinical Solutions segment net new business awards of $1,224.2 million and $4,451.3 million for the three and twelve months ended March 31, 2020, representing a book-to-bill ratio of 1.40x and 1.27x, respectively. Clinical Solutions net new business awards represented a record first quarter and drove backlog growth of 12.3%.
  • Commercial Solutions segment net new business awards of $307.4 million and $1,273.4 million for the three and twelve months ended March 31, 2020, representing a book-to-bill ratio of 1.07x and 1.04x, respectively.
• GAAP net income of $33.6 million and GAAP diluted earnings per share of $0.32 for the three months ended March 31, 2020.
• Adjusted diluted earnings per share of $0.68 for the three months ended March 31, 2020, representing growth of 15.3% compared to the same period in 2019.
• Adjusted EBITDA of $137.4 million for the three months ended March 31, 2020, representing growth of 1.8% compared to the same period in 2019.
• Although not issuing financial guidance at this time, the Company believes that its proactive cost management strategies will allow it to maintain a full year 2020 adjusted EBITDA margin in the range of 13% to 14% under various potential scenarios.

“From the onset of the COVID-19 pandemic, we’ve taken decisive actions to help ensure the well-being of our employees, customers and patients, including implementing rapid virtual engagement and remote monitoring. I am pleased that we maintained that important focus, while delivering solid first quarter results and strong net new business awards, sustaining our recent momentum and reaffirming the long-term strength of our model,” said Alistair Macdonald, Chief Executive Officer, Syneos Health. “We remain committed to advancing our customers’ complex therapies in creative ways that adhere to all safety and regulatory protocols, respect the guidelines of our site partners and proactively mitigate the impact to our business and customers’ timelines.”

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

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