Quintiles IMS Holdings, Inc (Q) has reported 30.84 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $74 million, or $0.31 a share in the quarter, compared with $107 million, or $0.88 a share for the same period last year. Revenue during the quarter surged 55.84 percent to $2,322 million from $1,490 million in the previous year period. Gross margin for the quarter expanded 662 basis points over the previous year period to 34.41 percent. Total expenses were 92.76 percent of quarterly revenues, up from 87.99 percent for the same period last year. That has resulted in a contraction of 478 basis points in operating margin to 7.24 percent.
Operating income for the quarter was $168 million, compared with $179 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $467 million compared with $224 million in the prior year period. At the same time, adjusted EBITDA margin improved 508 basis points in the quarter to 20.11 percent from 15.03 percent in the last year period.
“We continue to deliver on our targets, with another quarter of steady financial performance,” said Ari Bousbib, chairman and Chief executive officer, QuintilesIMS. “We are pleased with our progress in R&D Solutions as the Next-Gen clinical offering is gaining traction and driving significant client wins.”
For the second-quarter, Quintiles IMS Holdings expects revenue to be in the range of $1,930 million to $1,970 million. Quintiles IMS Holdings expects revenue to be in the range of $8,000 million to $8,100 million for financial year 2017. On an adjusted basis, the company projects diluted earnings per share to be in the range of $1.02 to $1.07 for the second-quarter. For financial year 2017, the company projects diluted earnings per share to be in the range of $4.45 to $4.60 on adjusted basis.
Operating cash flow drops significantly
Quintiles IMS Holdings, Inc has generated cash of $56 million from operating activities during the quarter, down 50 percent or $ 56 million, when compared with the last year period. The company has spent $240 million cash to meet investing activities during the quarter as against cash outgo of $43 million in the last year period.
The company has spent $176 million cash to carry out financing activities during the quarter as against cash outgo of $5 million in the last year period.
Cash and cash equivalents stood at $862 million as on Mar. 31, 2017, down 18.14 percent or $191 million from $1,053 million on Mar. 31, 2016.
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