A Look at Syneos Health’s Earnings and Risk Factors

Syneos Health (SYNH) is an American biopharmaceutical solutions company based in North Carolina. It specializes in helping companies with late-stage clinical trials. Let’s take a look at the company’s latest financial performance and understand what has changed in its risk factors.

Don't Miss our Black Friday Offers:

Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter

Syneos Health’s Q2 Financial Results and 2021 Guidance

Revenue of the company rose 26.6% year-over-year to $1.28 billion and surpassed the Street’s estimate of $1.27 billion. Adjusted EPS of $0.97 rose 67.2% year-over-year and beat analysts’ estimate of $0.96. The company said that its second-quarter results exceeded the midpoint of internal expectations across all segments. (See Syneos Health stock charts on TipRanks).

For 2021, the company anticipates revenue in the range of $5.18 billion to $5.30 billion. The Street expects the company to post revenue of $5.21 billion. Furthermore, Syneos expects adjusted EPS to be in the band of $4.25 to $4.43, compared to the consensus estimate of $4.31. It previously projected full-year adjusted EPS in the band of $4.17 to $4.42.

Syneos ended the second quarter with $261.14 million in cash and equivalents. It repurchased shares worth $73 million during the quarter.

Syneos Health’s Risk Factors

The new TipRanks’ Risk Factors tool reveals 62 risk factors for Syneos. Since December 2020, the company has updated its risk profile to introduce two new risks factors.

A newly added Financial and Corporate risk factor relates to the stock repurchase program. Syneos tells investors that its board in November 2020 authorized the repurchase of up to $300 million in shares. The repurchase program came into effect in January 2021 and is expected to run through December 2022. The company says that the program is funded with working capital, cash from operations and debt. About $182.5 million is remaining under the repurchase program but Syneos cautions investors that the program may be modified or terminated any time.

The Finance and Corporate risk factor’s sector average is at 37%, compared to Syneos’ 40%. Shares of the company have gained about 40% year-to-date.

Analysts’ Take

Following Syneos’ second quarter report, Jefferies analyst David Windley reiterated a Buy rating on the stock and raised the price target to $105 from $102. Windley’s new price target suggests 10.34% upside potential.

The analyst believes that Syneos’ guidance is achievable.

Consensus among analysts is a Strong Buy based on 6 Buys and 1 Hold. The average Syneos Health price target of $102.57 implies 7.79% upside potential to current levels.