CINCINNATI - Medpace Holdings, Inc. (NASDAQ: NASDAQ:MEDP), a full-service clinical contract research organization, reported a mixed financial outcome for the second quarter of 2024, with earnings surpassing analyst expectations but revenue falling short.
The company's stock plummeted 13.7% following the announcement, indicating a significant negative market response to the revenue shortfall.
For the quarter ended June 30, 2024, Medpace announced a 14.6% increase in revenue to $528.1 million, up from $460.9 million in the same period last year. However, this figure did not meet the consensus estimate of $528.41 million. The company's adjusted earnings per share (EPS) for the second quarter came in at $2.75, exceeding analyst predictions by $0.22.
Medpace's GAAP net income for the quarter was reported at $88.4 million, or $2.75 per diluted share, compared to $61.1 million, or $1.93 per diluted share, for the second quarter of the previous year. This represents an increase in net income margin from 13.3% to 16.7% year-over-year (YoY).
The company's EBITDA also saw a significant rise, reaching $112.3 million for the quarter, marking a 34.2% increase from the $83.6 million reported in the same quarter of the prior year. The EBITDA margin improved to 21.3%, up from 18.1% YoY.
Looking ahead, Medpace provided full-year 2024 financial guidance, forecasting revenue in the range of $2.125 billion to $2.175 billion, which reflects a growth rate of 12.7% to 15.3% over the previous year's revenue. The guidance midpoint falls slightly below the analyst consensus of $2.17 billion. The company's full-year adjusted EPS is projected to be between $11.24 and $11.93, with the midpoint below the consensus estimate of $11.46.
Medpace's CEO commented on the results, stating, "Our strong earnings performance reflects the continued execution of our strategic initiatives and operational excellence. We remain confident in our ability to deliver value to our shareholders despite the challenging market conditions."
The company's backlog conversion rate and net new business awards were also highlighted, with a backlog increase of 13.7% to $2.924.9 million and net new business awards totaling $551.0 million for the quarter.
Medpace's financial position remains robust, with cash and cash equivalents of $510.9 million as of June 30, 2024. The company generated $116.4 million in cash flow from operating activities during the second quarter, and it has $308.8 million remaining under its authorized share repurchase program.
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