IQVIA Holdings (NYSE: IQV) reported Q1 EPS of $1.50, $0.02 better than the analyst estimate of $1.48. Revenue for the quarter came in at $2.75 billion versus the consensus estimate of $2.72 billion.

• First quarter revenue $2,754 million and Adjusted EBITDA $562 million
• GAAP Diluted Earnings per Share $0.42; Adjusted Diluted Earnings per Share $1.50
• R&D Solutions quarterly net book-to-bill ratio 1.42x including pass throughs and 1.35x excluding pass throughs; contracted backlog including pass throughs grew 14 percent year-over-year to $19.6 billion

“Our team continues to execute well under these unprecedented circumstances. We have accelerated and expanded a variety of cost containment actions to counter the pressures on the top line. Importantly, we have quickly activated business continuity plans, including remote delivery capabilities in technology and analytics, remote monitoring and virtual trials in R&DS and virtual commercial activity with clients wherever possible. Despite restrictions placed on in-person access to clients, R&DS business development activity remained strong and the team added to our already industry-leading backlog. Demand for our technology and analytics offerings also remains strong and the TAS business benefits from a large portion of recurring revenue that we have built up over time,” said Ari Bousbib, chairman and CEO of IQVIA. “Our team is more energized than ever in fulfilling our company’s mission to help clients bring much needed treatments to patients and improve outcomes for patients across all diseases and therapies. In fact, we anticipate an acceleration of business momentum when the crisis subsides as delayed trial activities will still need to be performed. Combined with continued strength in new business wins, IQVIA is well positioned for a strong recovery by the end of 2020 and a return to our growth trajectory headed into 2021.”

GUIDANCE:

IQVIA Holdings sees Q2 2020 EPS of $1.00-$1.09, versus the consensus of $1.14. IQVIA Holdings sees Q2 2020 revenue of $2.365-2.44 billion, versus the consensus of $2.47 billion.

IQVIA Holdings sees FY2020 EPS of $5.75-$6.10, versus the consensus of $6.03. IQVIA Holdings sees FY2020 revenue of $10.6-10.925 billion, versus the consensus of $10.87 billion.

The future course of the COVID-19 virus is inherently uncertain; however, the company has used its best efforts to estimate the impact of COVID-19 on its business and has made the following assumptions in developing its outlook for the second quarter and the remainder of 2020:

• New cases of the virus continue to increase globally through the second quarter, then level off and begin to decline by the end of the quarter. Business activity begins to recover during the third quarter, as access to clinical research sites resumes gradually during the quarter, with a return to 100 percent functionality at the beginning of the fourth quarter.
• Currently, with the exception of China, most of the company’s offices are closed and substantially all of IQVIA\'s employees are working remotely. Because this is also the case with the company’s clients, business development and execution activities, especially when they require face to face interaction, have been inhibited. The company assumes that commercial activity gradually resumes throughout the third quarter and returns to normal by the beginning of the fourth quarter.
• Currently, approximately 80 percent of the company’s clinical research sites are inaccessible due to limitations on the ability to travel to and access sites. The company assumes the number of inaccessible sites will average 70 percent through the second quarter. For the third quarter, the company assumes an average of 35 percent of sites will be inaccessible, with all sites open and accessible by the beginning of the fourth quarter.

Based on these assumptions, the company is revising the full year guidance it had previously provided on February 12, 2020. IQVIA now expects full-year 2020 revenue to be between $10,600 million and $10,925 million, Adjusted EBITDA to be between $2,200 million and $2,300 million, and Adjusted Diluted Earnings per Share to be to be between $5.75 and $6.10. This guidance includes the total estimated impact from general business disruption caused by the COVID-19 virus. The company currently estimates that approximately half of this impact will occur in the second quarter, over a third in the third quarter and the balance in the fourth quarter. This guidance also includes an approximate $75 million unfavorable impact to revenue due to foreign currency movements since the company last provided guidance.

IQVIA expects the second quarter to be the fiscal quarter most impacted by the COVID-19 crisis. The company expects revenue for the second-quarter 2020 to be between $2,365 million and $2,440 million, Adjusted EBITDA to be between $445 million and $470 million, and Adjusted Diluted Earnings Per Share to be between $1.00 and $1.09.

Full-year and second-quarter financial guidance assumes foreign currency exchange rates as of April 24, 2020 remain in effect for the remainder of the year.

For earnings history and earnings-related data on IQVIA Holdings (IQV) click here.