Exploring Medpace Hldgs's Earnings Expectations

Medpace Hldgs (NASDAQ:MEDP) will release its quarterly earnings report on Monday, 2024-10-21. Here's a brief overview for investors ahead of the announcement.

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

Investors in Medpace Hldgs are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Earnings Track Record

The company's EPS beat by $0.21 in the last quarter, leading to a 18.27% drop in the share price on the following 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%

Medpace Hldgs Share Price Analysis

Shares of Medpace Hldgs were trading at $342.89 as of October 17. Over the last 52-week period, shares are up 55.53%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on Medpace Hldgs

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Medpace Hldgs.

With 10 analyst ratings, Medpace Hldgs has a consensus rating of Neutral. The average one-year price target is $395.6, indicating a potential 15.37% upside.

Comparing Ratings with Peers

In this comparison, we explore the analyst ratings and average 1-year price targets of Bio-Techne, Charles River and Bio-Rad Laboratories, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Buy trajectory for Bio-Techne, with an average 1-year price target of $82.33, implying 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.
• The consensus outlook from analysts is an Neutral trajectory for Bio-Rad Laboratories, with an average 1-year price target of $378.4, indicating a potential 10.36% upside.

Peers Comparative Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Bio-Techne, Charles River and Bio-Rad Laboratories, illuminating their respective standings within the industry. These metrics offer valuable 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 among its peers for revenue growth, with positive growth compared to some peers. It is at the top for gross profit, indicating strong profitability. However, its return on equity is lower than some peers, suggesting room for improvement in utilizing shareholder equity effectively. Overall, Medpace Hldgs shows a balanced performance compared to its peers in these key financial metrics.

All You Need to Know 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.

Unraveling the Financial Story of Medpace Hldgs

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Medpace Hldgs showcased positive performance, achieving a revenue growth rate of 14.59% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: Medpace Hldgs's net margin is impressive, surpassing industry averages. With a net margin of 16.73%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Medpace Hldgs's ROE excels beyond industry benchmarks, reaching 12.31%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Medpace Hldgs's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.76% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Medpace Hldgs's debt-to-equity ratio is below the industry average. With a ratio of 0.17, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

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.