Latest news with #Medpace
Globe and Mail
28-05-2025
- Business
- Globe and Mail
Is Medpace Stock Worth the Hype? Here's What Analysts Think.
Explore the exciting world of Medpace Holdings (NASDAQ: MEDP) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities! *Stock prices used were the prices of April 23, 2025. The video was published on May 27, 2025. Should you invest $1,000 in Medpace right now? Before you buy stock in Medpace, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Medpace wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor 's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Anand Chokkavelu, CFA has no position in any of the stocks mentioned. Dan Caplinger has no position in any of the stocks mentioned. Jim Gillies has positions in Medpace. The Motley Fool has positions in and recommends Medpace. The Motley Fool has a disclosure policy.
Yahoo
22-05-2025
- Business
- Yahoo
2 Unpopular Stocks that Deserve Some Love and 1 to Turn Down
Wall Street has issued downbeat forecasts for the stocks in this article. These predictions are rare - financial institutions typically hesitate to say bad things about a company because it can jeopardize their other revenue-generating business lines like M&A advisory. At StockStory, we look beyond the headlines with our independent analysis to determine whether these bearish calls are justified. Keeping that in mind, here are two stocks where Wall Street's pessimism is creating a buying opportunity and one where the skepticism is well-placed. Consensus Price Target: $58.09 (11.9% implied return) Founded shortly after World War II by a group of engineers from UC Berkley, Hexcel (NYSE:HXL) manufactures lightweight composite materials primarily for the aerospace and defense sectors. Why Does HXL Worry Us? Sales tumbled by 3.8% annually over the last five years, showing market trends are working against its favor during this cycle Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term 8 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position At $51.89 per share, Hexcel trades at 22.8x forward P/E. Read our free research report to see why you should think twice about including HXL in your portfolio, it's free. Consensus Price Target: $74.53 (-8% implied return) Best known for its wide assortment of user-generated content, Roblox (NYSE:RBLX) is an online gaming platform and game creation system. Why Do We Watch RBLX? Daily Active Users are rising, meaning the company can increase revenue without incurring additional customer acquisition costs if it can cross-sell additional products and features Brand halo makes it a customer acquisition machine that onboards new users at scale without spending much money Excellent EBITDA margin of 20.5% highlights the efficiency of its business model Roblox is trading at $81 per share, or 47.9x forward EV/EBITDA. Is now the right time to buy? Find out in our full research report, it's free. Consensus Price Target: $300.30 (-3.3% implied return) Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ:MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments. Why Does MEDP Stand Out? Existing business lines can expand without risky acquisitions as its organic revenue growth averaged 17.8% over the past two years Share repurchases over the last five years enabled its annual earnings per share growth of 35.1% to outpace its revenue gains Returns on capital are climbing as management makes more lucrative bets Medpace's stock price of $310.55 implies a valuation ratio of 23.7x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today for free.
Yahoo
11-05-2025
- Business
- Yahoo
MEDP Q1 Earnings Call: Outperformance Driven by Revenue Upside, Cautious Outlook Amid Funding Uncertainty
Clinical research company Medpace Holdings (NASDAQ:MEDP) announced better-than-expected revenue in Q1 CY2025, with sales up 9.3% year on year to $558.6 million. The company's full-year revenue guidance of $2.19 billion at the midpoint came in 2% above analysts' estimates. Its GAAP profit of $3.67 per share was 20.8% above analysts' consensus estimates. Is now the time to buy MEDP? Find out in our full research report (it's free). Revenue: $558.6 million vs analyst estimates of $527.1 million (9.3% year-on-year growth, 6% beat) EPS (GAAP): $3.67 vs analyst estimates of $3.04 (20.8% beat) Adjusted EBITDA: $118.6 million vs analyst estimates of $117.9 million (21.2% margin, 0.6% beat) The company lifted its revenue guidance for the full year to $2.19 billion at the midpoint from $2.16 billion, a 1.4% increase EPS (GAAP) guidance for the full year is $12.65 at the midpoint, beating analyst estimates by 2.9% EBITDA guidance for the full year is $477 million at the midpoint, in line with analyst expectations Operating Margin: 20.3%, in line with the same quarter last year Free Cash Flow Margin: 20.7%, down from 28.8% in the same quarter last year Organic Revenue rose 9.4% year on year (17.6% in the same quarter last year) Market Capitalization: $8.51 billion Medpace's first quarter results reflected higher-than-expected revenue, as management cited both improved program progression and a rise in reimbursable cost activity as key contributors. CEO August Troendle explained that while active clinical trial programs advanced well, some of the revenue upside was due to elevated investigator-related costs, with inflation and patient scarcity driving site expenses higher. The company also highlighted an uptick in pass-through costs as a factor in the revenue increase. Looking ahead, management emphasized the importance of backlog conversion and the overall funding environment for small biopharma clients. Troendle outlined that while the company's revenue guidance assumes stable cancellation rates and ongoing project execution, there remains risk from continued funding challenges among clients. CFO Kevin Brady reinforced that most of the year's expected revenue is supported by existing backlog, but cautioned that higher-than-normal cancellations or delays could impact future growth. Medpace's management focused on explaining the underlying trends affecting both quarterly results and the outlook for the business. They provided detail on competitive dynamics, funding headwinds, and backlog progression shaping the company's fundamentals. Elevated pass-through costs: Management attributed a significant portion of the revenue upside to higher reimbursable costs, primarily driven by inflation at clinical sites and increased complexity in trial operations. These pass-through costs, which are expenses incurred on behalf of clients and billed directly to them, were higher than anticipated, contributing to the top-line beat. Client funding pressures: The leadership team noted that many cancellations and project delays were tied to funding issues among small biopharma clients, which represent approximately 80% of Medpace's revenue. Troendle described a broad impact across the client base, with both pre-backlog and in-backlog project cancellations elevated due to financing challenges and reprioritization. Competitive bidding environment: Troendle confirmed that the current industry slowdown has resulted in more price competition, with an increased number of contract research organizations (CROs) participating in client requests for proposals (RFPs). He noted that clients are often inviting more CROs to bid, sometimes to seek lower pricing, which has increased the volume but reduced the quality of RFPs. Backlog burn and project progression: The company discussed that improved progression of active programs contributed to higher backlog conversion rates in the quarter. CFO Kevin Brady clarified that while execution on existing projects was strong, the acceleration was not due to operational changes but more to project timing and increased reimbursable activities. Headcount growth aligned to demand: Medpace maintained modest headcount growth in the quarter, with management stating that future hiring will be tied to trends in backlog growth and new business awards. They expect mid-single-digit headcount growth in the near term, contingent on improvements in the funding and business environment. Management's outlook for 2025 is shaped by the ongoing funding environment for small biopharma clients, backlog conversion rates, and the stability of project cancellations. The company's ability to sustain growth depends on moderating cancellations and ongoing execution of existing projects. Backlog conversion supports revenue: The company expects most 2025 revenue to come from existing backlog, assuming cancellation rates remain consistent with historical norms. Management believes this provides a degree of visibility, but also acknowledged the risk that cancellations could increase if funding constraints worsen. Industry funding uncertainty: Ongoing challenges in the biotech funding environment, including slowdowns in investment and reprioritization by venture capital and private equity backers, are seen as potential headwinds for both new bookings and ongoing project execution. Competitive pricing pressure: Management noted that intensified competition among CROs for new projects could weigh on margins and future business awards, particularly if clients continue to invite more firms into bidding processes or seek price reductions. David Windley (Jefferies): Asked about increased price competition and the quality of RFPs, to which Troendle responded that more CROs are being invited to bid, raising volumes but decreasing RFP quality, and that much of the competition is driven by client funding concerns. Max Smock (William Blair): Probed the risk to revenue if the business climate does not improve, and Troendle stated that most second-half 2025 revenue is already "locked in" barring late-stage cancellations, but acknowledged a narrowed path for backlog growth if cancellations remain elevated. Ann Hynes (Mizuho): Sought detail on cancellation rates and their drivers, but Troendle said Medpace does not disclose specific rates and described cancellations as broad-based, mainly tied to client funding difficulties and some drug failures. Eric Coldwell (Baird): Inquired about the backlog burn rate and whether recent improvement was sustainable, with CFO Brady pointing to higher reimbursable cost activity and strong project progression as the main factors, rather than operational changes. Jalindra Singh (Truist): Asked about the stability of backlog conversion and Medpace's positioning versus competitors, with management stating that backlog conversion is supported by current programs and that no significant change in competitive dynamics has occurred recently. In the coming quarters, the StockStory team will closely monitor (1) the trend in project cancellations—particularly whether funding conditions for small biopharma clients stabilize, (2) Medpace's ability to secure new business awards and achieve a book-to-bill ratio above 1.0, and (3) the sustainability of higher backlog conversion rates. Tracking competitive pricing dynamics and any changes in trial site costs will also be important for assessing future margin trends. Medpace currently trades at a forward P/E ratio of 23.7×. In the wake of earnings, is it a buy or sell? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-05-2025
- Business
- Yahoo
10x Genomics (TXG) Reports Q1: Everything You Need To Know Ahead Of Earnings
Biotech company 10x Genomics (NASDAQ:TXG) will be announcing earnings results tomorrow after the bell. Here's what investors should know. 10x Genomics beat analysts' revenue expectations by 3.5% last quarter, reporting revenues of $165 million, down 10.3% year on year. It was a slower quarter for the company, with a significant miss of analysts' EPS estimates and full-year revenue guidance missing analysts' expectations. Is 10x Genomics a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting 10x Genomics's revenue to decline 5.9% year on year to $132.7 million, a reversal from the 5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.29 per share. 10x Genomics Total Revenue Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. 10x Genomics has missed Wall Street's revenue estimates twice over the last two years. Looking at 10x Genomics's peers in the life sciences tools & services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Medpace delivered year-on-year revenue growth of 9.3%, beating analysts' expectations by 6%, and Mettler-Toledo reported a revenue decline of 4.6%, topping estimates by 1%. Medpace traded down 2.1% following the results while Mettler-Toledo was up 4.3%. Read our full analysis of Medpace's results here and Mettler-Toledo's results here. There has been positive sentiment among investors in the life sciences tools & services segment, with share prices up 5.9% on average over the last month. 10x Genomics is up 18.8% during the same time and is heading into earnings with an average analyst price target of $15.27 (compared to the current share price of $8.48). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
Yahoo
06-05-2025
- Business
- Yahoo
Earnings To Watch: Illumina (ILMN) Reports Q1 Results Tomorrow
Genomics company Illumina (NASDAQ:ILMN) will be announcing earnings results this Thursday afternoon. Here's what to expect. Illumina beat analysts' revenue expectations by 2.1% last quarter, reporting revenues of $1.10 billion, flat year on year. It was a strong quarter for the company, with an impressive beat of analysts' full-year EPS guidance estimates. Is Illumina a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Illumina's revenue to decline 1.9% year on year to $1.04 billion, in line with the 1.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.94 per share. Illumina Total Revenue Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Illumina has missed Wall Street's revenue estimates four times over the last two years. Looking at Illumina's peers in the life sciences tools & services segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Medpace delivered year-on-year revenue growth of 9.3%, beating analysts' expectations by 6%, and Mettler-Toledo reported a revenue decline of 4.6%, topping estimates by 1%. Medpace traded down 2.1% following the results while Mettler-Toledo was up 4.3%. Read our full analysis of Medpace's results here and Mettler-Toledo's results here. There has been positive sentiment among investors in the life sciences tools & services segment, with share prices up 3.7% on average over the last month. Illumina is up 5.3% during the same time and is heading into earnings with an average analyst price target of $115.55 (compared to the current share price of $77.35). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
