A Look at Medpace Hldgs's Upcoming Earnings Report

Medpace Hldgs (NASDAQ:MEDP) is preparing to release its quarterly earnings on Monday, 2024-10-21. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Medpace Hldgs to report an earnings per share (EPS) of $2.80.

Anticipation surrounds Medpace Hldgs's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.21, leading to a 18.27% drop in the share price on the subsequent day.

Here's a look at Medpace Hldgs's past performance and the resulting price change:

Quarter	Q2 2024	Q1 2024	Q4 2023	Q3 2023
EPS Estimate	2.54	2.46	2.22	2.04
EPS Actual	2.75	3.20	2.46	2.22
Price Change %	-18.0%	8.0%	12.0%	20.0%

Market Performance of Medpace Hldgs's Stock

Shares of Medpace Hldgs were trading at $342.89 as of October 17. Over the last 52-week period, shares are up 53.36%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Medpace Hldgs

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Medpace Hldgs.

Analysts have provided Medpace Hldgs with 10 ratings, resulting in a consensus rating of Neutral. The average one-year price target stands at $395.6, suggesting a potential 15.37% upside.

Comparing Ratings with Peers

The below comparison of the analyst ratings and average 1-year price targets of Bio-Techne, Charles River and Bio-Rad Laboratories, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.

• Bio-Techne is maintaining an Buy status according to analysts, with an average 1-year price target of $82.33, indicating a potential 75.99% downside.
• Charles River received a Neutral consensus from analysts, with an average 1-year price target of $203.75, implying a potential 40.58% downside.
• As per analysts' assessments, Bio-Rad Laboratories is favoring an Neutral trajectory, with an average 1-year price target of $378.4, suggesting a potential 10.36% upside.

Overview of Peer Analysis

In the peer analysis summary, key metrics for Bio-Techne, Charles River and Bio-Rad Laboratories are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Medpace Hldgs	Neutral	14.59%	$153.84M	12.31%
Bio-Techne	Buy	1.59%	$203.35M	1.99%
Charles River	Neutral	-3.19%	$353.71M	2.44%
Bio-Rad Laboratories	Neutral	-6.26%	$355.12M	-27.36%

Key Takeaway:

Medpace Hldgs ranks in the middle for revenue growth among its peers. It is at the top for gross profit and return on equity.

About Medpace Hldgs

Medpace is a late-stage contract research organization that provides full-service drug-development and clinical trial services to small and midsize biotechnology, pharmaceutical, and medical-device firms. It also offers ancillary services such as bioanalytical laboratory services and imaging capabilities. The company was founded over 30 years ago and has over 5,400 employees across 40 countries. Medpace is headquartered in Cincinnati and its operations are principally based in the us, but it also operates in Europe, Asia, South America, Africa, and Australia. Cinven, a global private equity firm, acquired Medpace for $915 million in 2014 and exited its investment in 2018.

Medpace Hldgs: A Financial Overview

Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

Revenue Growth: Medpace Hldgs displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 14.59%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Health Care sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Medpace Hldgs's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 16.73%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Medpace Hldgs's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 12.31%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 4.76%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.17, Medpace Hldgs adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Medpace Hldgs visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.