2023-04-27 14:33:00 ET
IQVIA Holdings ( NYSE: IQV ) and ICON Public Limited ( NASDAQ: ICLR ) led decliners in the contract research space Thursday after the companies reiterated the guidance despite reporting better-than-expected Q1 2023 financials.
IQV shares have reached the lowest level in more than six months, while ICLR has approached the lowest level since December, and their smaller competitors in CRO space Medpace Holdings ( MEDP ), Societal CDMO ( SCTL ), and Avid Bioservices ( CDMO ) are also in the red.
Revenue at Iqvia ( IQV ) rose ~2% YoY during the quarter to reach $3.7B, while Icon ( ICLR ) managed to record ~4% YoY growth as its topline stood at $2.0B.
As of Q1 end, Iqvia ( IQV ) posted $27.9B of contracted backlog, including reimbursed expenses in its R&D Solutions segment, indicating ~10% YoY growth, and the company expects ~$7.3B of this backlog to convert to revenue in the next twelve months.
However, CEO Ari Bousbib cited “customer cautiousness” despite healthy industry demand, as indicated by $2.6B in quarterly bookings at the end of Q1 2023.
The company reaffirmed its 2023 revenue and adj. earnings estimates in line with Street forecasts, as did Ireland-based Icon ( ICLR ), which reported its Q1 2023 earnings after the close Wednesday.
ICLR posted $21.2B of closing backlog with ~8% YoY growth and ~4% sequential growth and its adj. EBITDA improved ~17% YoY to $399.1M.
“ICON’s first quarter results reflect continued demand for our broad portfolio of services despite the challenging macroeconomic environment,” CEO Steve Cutler said.
More on CROs
- ICON: Attractive Valuation, Earnings Growth Driving Future Outperformance
- IQVIA, a new buy at Truist on differentiated contract research organization business
- IQVIA: Expect Margins To Continue Expanding
For further details see:
Iqvia, Icon lag contract research rivals after Q1 earnings