Syneos Health, Inc. (SYNH) Tops Q2 EPS by 10c, Revenues Beat; Offers FY20 EPS/Revenue Guidance Above Consensus

Syneos Health, Inc. (NASDAQ: SYNH) reported Q2 EPS of $0.58, $0.10 better than the analyst estimate of $0.48. Revenue for the quarter came in at $1.01 billion versus the consensus estimate of $990.78 million.

Highlights

• GAAP revenue of $1,013.4 million for the three months ended June 30, 2020, representing a decline of 13.1%, 13.3% on an adjusted basis, and 12.8% on a constant currency adjusted basis compared to the same period in 2019.
• Net new business awards of $1,360.9 million and $5,796.6 million for the three and twelve months ended June 30, 2020, representing book-to-bill ratios of 1.34x and 1.27x, respectively.
  • Clinical Solutions segment net new business awards of $1,180.1 million and $4,567.1 million for the three and twelve months ended June 30, 2020, representing book-to-bill ratios of 1.58x and 1.35x, respectively. Clinical Solutions backlog growth of 14.8% compared to the same period in 2019.
  • Commercial Solutions segment net new business awards of $180.8 million and $1,229.5 million for the three and twelve months ended June 30, 2020, representing book-to-bill ratios of 0.68x and 1.04x, respectively. Secured two new strategic Commercial relationships expected to fuel future growth.
• GAAP net income of $3.9 million and GAAP diluted earnings per share of $0.04 for the three months ended June 30, 2020.
• Adjusted diluted earnings per share of $0.58 for the three months ended June 30, 2020.
• Adjusted EBITDA of $118.7 million for the three months ended June 30, 2020.

“We delivered solid second quarter results with strong overall net awards, demonstrating the resilience of our Biopharmaceutical Acceleration Model despite the challenges of COVID-19,” said Alistair Macdonald, Chief Executive Officer, Syneos Health. “We continue to build a strong foundation for growth in 2021 and beyond, renewing agreements with two large customers and securing two new long-term Commercial strategic relationships, including a Top 20 pharma company, this quarter. While it remains challenging to fully estimate the future impact of the pandemic, we are pleased to provide our full year guidance for 2020, which reflects our expectation of the continued recovery during the second-half of the year, as well as our confidence in the long-term strength of our business and strategy.”

GUIDANCE:

Syneos Health, Inc. sees FY2020 EPS of $3.16-$3.38, versus the consensus of $2.98. Syneos Health, Inc. sees FY2020 revenue of $4.47-4.57 billion, versus the consensus of $4.46 billion.

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

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