Medpace shares fall as Q2 bookings miss expectations

Published 21/04/2025, 21:34
© Reuters.

Investing.com -- Medpace Holdings Inc (NASDAQ:MEDP) reported first quarter earnings that beat analyst estimates, but shares tumbled 6.6% as new business awards fell short of expectations.

The contract research organization posted adjusted earnings per share of $3.67, surpassing the analyst consensus of $3.05. Revenue grew 9.3% YoY to $558.6 million, exceeding estimates of $527.74 million.

However, net new business awards declined 18.8% YoY to $500 million in Q1, resulting in a book-to-bill ratio of 0.90x. This suggests slowing demand for Medpace’s clinical trial services.

"While our first quarter financial results were strong, we saw softness in bookings that may impact growth later this year," said CEO August Troendle.

The company’s backlog decreased 2.1% YoY to $2.85 billion as of March 31.

For full-year 2025, Medpace forecasts revenue of $2.14-2.24 billion, representing growth of 1.5-6.2% over 2024. The midpoint of $2.19 billion is slightly above the $2.15 billion analyst consensus.

Adjusted EPS guidance of $12.26-$13.04 brackets the $12.48 consensus estimate.

Medpace repurchased 1.19 million shares for $389.8 million during Q1. The board approved an additional $1 billion for future buybacks.

The stock decline suggests investors are concerned about slowing growth despite the Q1 earnings beat. Medpace will need to demonstrate improved bookings in coming quarters to alleviate these worries.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.