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Medpace Shares Rise 13% on Higher Q3 Earnings & Forward Outlook

Source: Streetwise Reports

October 27, 2021 (Investorideas.com Newswire) Shares of Medpace Holdings Inc. climbed to a new 52-week high after the CRO, a provider of full-service clinical trial development services, reported financial results for Q3/21 that included a 28.3% increase in YoY revenue.


After U.S. markets closed for trading yesterday afternoon, full-service
clinical contract research organization (CRO) Medpace Holdings Inc. (MEDP:NASDAQ), announced financial results after its third quarter of fiscal year 2021 ended September 30, 2021.

The company reported that revenue increased by 28.3% to $295.6 million in Q3/21, compared to $230.4 million in Q3/20. The firm noted that the revenue gains represented a backlog conversion rate of 17.0%.

Medpace Holdings advised that it booked new business orders during Q3/21 totaling $408.0 million. This amount was 29.4% higher than the $315.4 million in net new business awards booked during Q3/20. The end result is a net book-to-bill ratio of 1.38x, which the company determines by dividing net new business awards by revenue. The company advised that as of September 30, 2021, it had a total backlog of $1.8 billion.

Medpace advised that for Q3/21 it posted GAAP net income of $48.6 million, or $1.29 per diluted share, compared to GAAP net income of $41.5 million, or $1.09 per diluted share in Q3/20. The firm noted that on a percentage basis, net income margin in Q3/21 decreased to 16.4%, compared to net income margin of 18% in Q3/20.

The company indicated that it recorded EBITDA of $60.1 million in Q3/21, which was 15.7% higher compared to EBITDA of $51.9 million reported during Q3/20. Medpace added that on a percentage basis, EBITDA margin in Q3/21 decreased to 20.3% of revenue, compared to an EBITDA margin of 22.5% in Q3/20.

Medpace provided some forward guidance and advised that for FY/21 it expects revenues will increase by 22.6-23.7% year-over-year to between $1.135-$1.145 billion, versus the $925.9 million it achieved in FY/20. The company added that for FY/21, it forecasts GAAP net income of $176-180 million, EBITDA of $216-222 million and GAAP net income of $176-180 million and diluted earnings (GAAP) of $4.66-4.77 per share.

For FY/22, the firm advised that it expects revenues will be between $1.40-1.46 billion and that it estimates FY/22 EBITDA will be between $262-278 million.

Medpace is a clinical contract research organization (CRO) based in Cincinnati, Ohio. The company has around 4,400 employees in 40 countries. The company offers comprehensive global Phase 1-4 clinical trial design and development services to biotech, pharmaceutical and medical device companies. The company stated it is experienced in all major treatment areas including anti-viral, anti-infective, cardiology, central nervous system, endocrinology, and metabolic diseases.

Medpace started the day with a market cap of around $6.7 billion with approximately 35.8 million shares outstanding and a short interest of about 2.5%. MEDP shares opened 10% higher today at $208.05 (+$19.67, +10.44%) over yesterday's $188.38 closing price and reached a new 52-week high price this morning of $217.31. The stock has traded today between $204.53 and $217.31 per share and is currently trading at $214.23 (+$25.85, +13.72%).

Disclosure:

1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

6) This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.

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