Street Calls of the Week
Investing.com -- Medpace Holdings Inc (NASDAQ:MEDP) saw its shares surge 18.9% in after-hours trading Wednesday after the clinical research organization reported third-quarter earnings and revenue that exceeded analyst expectations, while also raising its full-year outlook above consensus estimates.
The company reported adjusted earnings per share of $3.86 for the third quarter, beating analyst estimates of $3.53 by $0.33. Revenue jumped 23.7% YoY to $659.9 million, surpassing the consensus estimate of $640.99 million and reflecting strong demand for its clinical research services.
"Our third quarter performance demonstrates the continued strength of our business model and our ability to execute effectively for our clients," said Medpace CEO. The company’s stock soared nearly 19% in after-hours trading following the announcement, reflecting investors’ positive reaction to both the quarterly results and improved guidance.
Medpace reported net new business awards of $789.6 million in the third quarter, a 47.9% increase from the comparable prior-year period, resulting in a book-to-bill ratio of 1.20x. The company’s backlog grew 2.5% YoY to $3.0 billion.
The company raised its full-year 2025 revenue guidance to a range of $2.48-2.53 billion, above the analyst consensus of $2.465 billion. This updated outlook represents growth of 17.6% to 20.0% over 2024 revenue.
EBITDA for the quarter increased 24.9% to $148.4 million, representing an EBITDA margin of 22.5%, compared to 22.3% in the same period last year.
During the third quarter, Medpace repurchased 14,649 shares for $4.5 million. For the first nine months of 2025, the company has repurchased nearly 3 million shares for a total of $912.9 million, with $821.7 million remaining under its authorized share repurchase program as of September 30.