TransUnion Keeps Quarterly Dividend at $0.105 a Share; Payable Dec. 9 to Shareholders of Record on Nov. 22

Gartner, Inc. IT has reported better-than-expected third-quarter 2024 results.

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The company’s adjusted earnings per share of $2.5 beat the Zacks Consensus Estimate by 2% but decreased 2.3% from the year-ago quarter. Revenues of $1.5 billion beat the consensus estimate marginally and improved 5.4% year over year.

The IT stock has gained 15.7% over the six months, outperforming the 9.3% rally of the industry it belongs to and 11.3% growth of the Zacks S&P 500 Composite.

Six Months Price Performance

The Zacks Computer & Technology sector in the USA looks like an Attractive area to stay invested in. It is leading the way on Q3 earnings growth. This month, we take a deeper dive -- into that all-important Q3 earnings growth area. We do that with Our Chief Equity Strategist and Economist, John Blank.

1. What are the elements that continue to make this sector an earnings leader?

2. Does being an earnings leader translate to also being a market leader?

3. What should investors be looking for here?

4. Taking a closer look, Tesla was one of the first of the big U.S. tech companies to report Q3 earnings, on Oct. 23rd. The company reported a higher than expected third quarter profit and improved margins. Yet it’s been reported that Wall Street continues to reevaluate whether or not to keep Tesla in that Magnificent Seven group. Why is that?

5. The Mag 7 tech stocks are forecast to grow earnings year over year this quarter by about 18%. Is that what you’re expecting?

6. Are investors looking for clues in these reports as to whether emerging technology is driving profits?

7. So will AI continue to be a focus?

8. Given the recent surge in Big Tech stocks, what kind of market reaction are you expecting to from these company reports going forward?

9. Aside from Big Tech, in the Zacks #1 (Strong Buy) category, you’re keeping an eye on Vertiv Holdings VRT, Advantest ATEYY and TransUnion TRU.

Our Chief Equity Strategist and Economist, John Blank, on Big Tech stocks. With John, I’m Terry Ruffolo.

Zacks Investment Research

IQVIA Holdings Analytics Inc. IQV has reported impressive third-quarter 2024 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

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Adjusted earnings were $2.8 per share, outpacing the Zacks Consensus Estimate by 1.1% and rising 14.1% on a year-over-year basis. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and grew 4.3% from the year-ago quarter.

The IQV stock has gained 20% over the past year, underperforming the 30% rally of the industry it belongs to and 39.8% growth of the Zacks S&P 500 Composite.

One Year Price Performance

IQVIA’s Quarterly Details

The Research and Development segment’s revenues were $2.2 billion, increasing 1.9% from the year-ago quarter and 2% on a constant-currency basis. This metric met our estimate.

Revenues from the Technology and Analytics segment were $1.6 billion, increasing 8.6% from the third quarter of 2023. The metric beat our estimate of $1.5 billion and increased 8.2% on a constant-currency basis.

Contract Sales & Medical Solutions revenues decreased 1.6% on a year-over-year basis to $180 million and increased 1.1% on a constant-currency basis. It missed our expectation of $182.9 million.

Adjusted EBITDA for the third quarter of 2024 was $939 million, indicating a 5.7% rise from the year-ago quarter and outpacing our projection of $938.6 million.

The company exited the quarter with cash and cash equivalents of $1.6 billion compared with $1.5 billion at the end of the preceding quarter. Long-term debt (less current portion) was $12.3 billion compared with $12.1 billion at the end of the second quarter of 2024.

Net cash generated from operating activities was $721 million and the capital expenditure for the quarter was $150 million. The company generated a free cash flow of $571 million in the quarter.

IQV’s 2024 Guidance

For 2024, IQVIA lowered its revenue guidance to $15.35-$15.40 billion from the $15.43-$15.53 billion mentioned in the previous quarter. The Zacks Consensus Estimate of $15.46 billion is higher than IQV’s revised guided range.

The company updated the adjusted EPS guidance to $11.10-$11.20 from the $11.10-$11.30 given in the previous quarter. The mid-point of the guided range is $11.15, lower than the Zacks Consensus Estimate for EPS of $11.17. The company’s adjusted EBITDA view for the same period has been reduced to $3.67-$3.70 billion from the $3.71-$3.77 billion provided in the preceding quarter.

IQV carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot of IQVIA’s Peers

Republic Services, Inc. RSG reported mixed third-quarter 2024 results.

RSG’s earnings per share (excluding 1 cent from non-recurring items) of $1.8 outpaced the Zacks Consensus Estimate by 11.7% and grew 17.5% from the year-ago quarter. Revenues of $4.1 billion missed the consensus mark by a slight margin but increased 6.5% on a year-over-year basis.

TransUnion TRU posted impressive third-quarter 2024 results.

TRU’s quarterly adjusted earnings (adjusting 69 cents from non-recurring items) of $1 per share surpassed the consensus mark by 2% and increased 14.3% on a year-over-year basis. Total revenues of $1.1 billion outpaced the consensus mark by 2.2% and increased 12% from the year-ago quarter.

Zacks Investment Research