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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.