Research Desk Line-up: Cancer Genetics Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 22, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Quintiles IMS Holdings, Inc. (NYSE: Q), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=Q, following the Company's disclosure of its second quarter fiscal 2017 operating results on August 03, 2017. The Healthcare Services Company's raised its adjusted earnings forecast for fiscal 2017. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Medical Laboratories & Research industry. Pro-TD has currently selected Cancer Genetics, Inc. (NASDAQ: CGIX) for due-diligence and potential coverage as the Company announced on August 14, 2017, its financial and operating results for Q2 2017 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Cancer Genetics when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on Q; also brushing on CGIX. With the links below you can directly download the report of your stock of interest free of charge at:
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Earnings Reviewed
For the second quarter ended June 30, 2017, Quintiles IMS reported revenue of $1.97 billion, up increased 1.1% on a constant currency basis and was flat on a reported basis. As per purchase accounting rules, a portion of the Company's deferred revenue, which had otherwise been realized as revenue in future periods, must be eliminated. Excluding this $2 million of deferred revenue adjustment, and on a combined Company basis, Quintiles IMS' revenue grew 1.2% on a constant currency basis for Q2 2017. The Company's revenue numbers surpassed analysts' estimates of $1.96 billion.
Quintiles IMS' income from operations was $151 million for Q2 2017 compared to $150 million for Q2 2016. The Company's adjusted EBITDA was $486 million for the reported quarter compared to $466 million for the prior year's same quarter.
For Q2 2017, Quintiles IMS posted GAAP net income of $75 million, or earnings per share of $0.34, compared to GAAP net income of $86 million, or $0.71 per diluted share. The Company's adjusted net income was $242 million and adjusted diluted earnings per share were $1.09, ahead of Wall Street's estimates of $1.05 per share.
Segment Results
During Q2 2017, Quintiles IMS' Commercial Solutions revenue of $871 million grew 1.9% at a constant currency. The segment's growth was partially offset by a decline in the Encore business, a legacy Quintiles provider business. The Encore business was sold after the close of Q2 2017.
For the reported quarter, combined company Research & Development Solutions revenue of $896 million grew 1.7% on a constant currency basis and 0.4% at an actual FX rate. The segment's growth was impacted by a y-o-y decline in the early clinical development business, due to a facility closing in Europe during 2016, as well as weak bookings and high cancellations in Q3 2016.
During Q2 2017, Quintiles IMS' Integrated Engagement Services revenue of $204 million was down 2.1% on a constant currency and 3.7% on a reported basis. The y-o-y comparisons for the segment were impacted by the acceleration of $9 million of revenue in Q2 2016 for the modification of a royalty-based sales force arrangement.
Financial Position
As of June 30, 2017, Quintiles IMS' cash and cash equivalents were $902 million and the principal amount of debt was $8.99 billion, resulting in net debt of $8.08 billion. At the end of the reported quarter, the Company's gross leverage ratio was 4.5 times, and net leverage ratio was 4.1 times trailing 12-month combined Company adjusted EBITDA.
Share Repurchase
During Q2 2017, Quintiles IMS increased its post-merger share repurchase authorization to $3.5 billion from $2.5 billion. On May 31, 2017, the Company repurchased $300 million of stock from its private equity sponsors and the founder of the legacy Quintiles organization. Quintiles IMS also repurchased $78 million of its stock in the open market, for a total repurchase of $378 million during the reported quarter. The Company had $853 million of share repurchase authorization remaining at June 30, 2017.
Guidance
Quintiles IMS reaffirmed its full-year 2017 guidance for revenue to be in the band of $8.00 billion to $8.10 billion and adjusted EBITDA to be in the range of $2.00 billion to $2.10 billion. The Company raised its adjusted diluted earnings per share guidance to between $4.50 to $4.65 from $4.45 to $4.60.
For Q3 2017, Quintiles IMS expects revenue to be in the range of $2.00 billion and $2.03 billion; adjusted EBITDA to be between $500 million and $515 million, and adjusted diluted earnings per share to be between $1.10 and $1.15.
Stock Performance
At the closing bell, on Monday, August 21, 2017, Quintiles IMS' stock climbed 1.67%, ending the trading session at $93.08. A total volume of 1.15 million shares have exchanged hands, which was higher than the 3-month average volume of 1.03 million shares. The Company's stock price surged 11.42% in the last three months, 22.07% in the past six months, and 24.02% in the previous twelve months. Moreover, the stock rallied 22.39% since the start of the year. The stock is trading at a PE ratio of 128.03 and currently, has a market cap of $20.19 billion.
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