IMS Shares Drop on Earnings Miss, Lower Guidance, and Downgrade

IMS Health's stock plunged Thursday after the company announced third-quarter earnings decreased despite higher revenues, and guided lower for its full-year outlook. The company reported profits of $57.1 million ($0.29/share) versus $69.3 million ($0.34/share) last year. Excluding items, the company earned $0.36/share, which missed analysts' targets of $0.40/share. Total revenues increased 12% to $538.8 million, surpassing estimates of $532.7 million. Operating expenses went up 15% to $421.7 million. For the year, IMS projects earnings of $1.52-$1.56/share, down from previous company estimates of $1.56-$1.60/share, and below analyst forecasts of $1.59/share. IMS was also downgraded by William Blair Thursday to "market perform" from "outperform." Shares of the company traded down 21.8% to $23.12 Thursday.

Sources: Press release, Bloomberg, RTT News
Commentary: IMS Health Guides Lower; Stock Should Fall Hard • Top Six Socially Responsible Healthcare and Pharmaceutical Firms
Stocks to watch: RX. Competitors: Cegedim S.A. (Private), MSFT.ETFs: IJH

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