Medpace stock rocketed late Wednesday on “another strong Q,” that included double-digit sales and profit growth and a guidance hike.
“There’s no other term of describe the Medpace quarter than another solid beat that included another guidance raise,” Leerink Partners analyst Michael Cherny said in a report. “The quarter saw solid pull-through on better revenue, while the new bookings outpaced our/investor expectations, and the company’s 1.20x book-to-bill outpaced its 1.15x target.”
In after-hours trades, shares of Medpace Holdings (MEDP) soared 17.3% to 641.13. Medpace stock broke out of a cup base with a buy point at 501.30 on Sept. 17, MarketSurge shows. Shares ended the regular session trading above their chase zone, which runs up to 526.37.
Medpace Stock Rockets On Beat-And-Raise
On an adjusted basis, Medpace earned $3.86 per share, growing more than 28% to top expectations for $3.37, according to FactSet. Leerink’s Cherny says analysts called for a range of $3.55 to $3.65. Revenue also climbed nearly 24% to $659.9 million, above forecasts for $641 million. That’s the third straight quarter of accelerating sales growth.
The company, which performs clinical research services for drug- and device-makers, netted $789.6 million in new business awards. That’s up roughly 48% and led to a book-to-bill ratio of 1.2x. Analysts called for a lower 1.1x to 1.13x, Cherny said.
Medpace will hold a call early Thursday to discuss its results.
“The details on the drivers of the beat and areas such as ongoing mix and health of biotech customer pipeline will determine where the stock settles tomorrow,” he said. “On the surface, there isn’t a ton to complain about in the results themselves.”
Cherny rates Medpace stock an outperform.
Medpace also hiked is full-year outlook. The company guided to $14.60 to $14.86 in adjusted per-share earnings, up about 59 cents at the midpoint from its previous guidance. Medpace also calls for $2.48 billion to $2.53 billion in sales, vs. the previous forecast for $2.42 billion to $2.52 billion.
The Street projected earnings of $14.05 per share and $2.46 billion in sales.
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
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