Tuesday, 02 January 2024 12:17 GMT

Medpace Retail Trader Optimism Abounds As Stock Poised For Best Day Ever On Q2 Beat, Outlook


(MENAFN- AsiaNet News)

Shares of Medpace Holdings, Inc. (MEDP) trended on Stocktwits following the company's quarterly results and outlook, which exceeded expectations.

The company is a full-service contract research organization (CRO), providing Phase I through IV clinical development services to the biotechnology, pharmaceutical, and medical device industries.

Medpace stock rose by over 45% in overnight trading as traders welcomed the financial results for the second quarter of fiscal year 2025.

On Stocktwits, retail sentiment toward the stock inflected higher to 'extremely bullish' (97/100) by late Monday, from 'neutral' a day ago. The message volume also picked up pace to 'extremely high' levels.

A bullish watcher said the strong after-hours reaction went on to prove how oversold healthcare stocks were.“Is this a preview of $UNH and future health stocks that are oversold...,” they wondered.

Another user flaunted their bet on Medpace stock that paid off. They said,“$MEDP bought 10K calls just for the bell 90K net profit 900% for the moment, regret I did not buy more.”

Cincinnati, Ohio-based Medpace reported second-quarter GAAP net income of $90.3 million or $3.10 per share compared to $88.4 million or $2.75 per share a year ago. Revenue climbed 14.2% year over year (YoY) to $603.3 million. 

Both metrics exceeded the Koyfin-compiled consensus of $2.97 and $539 million, respectively.

Net new business awards jumped 12.6% YoY to $620.5 million, translating to a book-to-bill ratio of 1.03 times. 

The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $130.47 million, compared to $112.25 million, with an adjusted EBITDA margin of 21.6% versus 21.3% a year ago.

Medpace guided 2025 revenue to be in the range of $2.42 billion to $2.52 billion, marking a 14.7% to 19.5% increase, and earnings per share in the range of $13.76 to $14.53.

Analysts, on average, estimate revenue of $2.19 billion and GAAP earnings per share of $12.74, respectively.

Medpace stock is down over 7% so far this year. If the overnight gains are sustained on Tuesday, the stock is on track to record its biggest ever single-day gain.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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