Medpace Holdings (MEDP) Misses Q1 EPS by 3c, Slight Beat on Revenues; Weak FY17 Guidance

Medpace Holdings (NASDAQ: MEDP) reported Q1 EPS of $0.34, $0.03 worse than the analyst estimate of $0.37. Revenue for the quarter came in at $93.8 million versus the consensus estimate of $93.52 million.

GUIDANCE:

Medpace Holdings sees FY2017 EPS of $1.30-$1.40, versus the consensus of $1.63. Medpace Holdings sees FY2017 revenue of $373-385 million, versus the consensus of $397.7 million.

Financial Guidance

The Company forecasts 2017 net service revenue in the range of $373 million to $385 million, representing growth of 0.6% to 3.9% over 2016 net service revenue of $370.6 million. GAAP net income for full year 2017 is forecasted in the range of $32.0 million to $35.4 million. Additionally, full-year 2017 Adjusted EBITDA is expected in the range of $104 million to $108 million.

Based on forecasted 2017 net service revenue of $373 to $385 million and GAAP net income of $32.0 to $35.4 million, diluted earnings per share (GAAP) is forecasted in the range of $0.77 to $0.85. Adjusted Net Income for 2017 is forecasted in the range of $54.0 million to $58.0 million, compared to Adjusted Net Income of $55.7 million for 2016. Furthermore, Adjusted Net Income per diluted share for 2017 is expected in the range of $1.30 to $1.40 per share. This guidance does not reflect the potential impact of any share repurchases the Company may make pursuant to the share repurchase program.

Highlights

• Net service revenue of $93.8 million in the first quarter increased 6.8% from net service revenueof $87.8 million for the comparable prior-year period, representing a backlog conversion rate of 19.4%.
• Net new business awards totaled $93.9 million in the first quarter, representing a decline of 11.8% from net new business awards of $106.4 million for the comparable prior-year period and a net book-to-bill ratio of 1.00x.
• First quarter 2017 GAAP net income was $8.4 million, or $0.20 per diluted share, versus a GAAP net income of $3.4 million, or $0.11 per diluted share, for the comparable prior-year period. Net income margin was 9.0% and 3.9% for the first quarter of 2017 and 2016, respectively.
• Adjusted EBITDA was $26.2 million, an increase of 1.8% versus the comparable prior-year period, resulting in an Adjusted EBITDA margin of 28.0% for the first quarter of 2017.
• Adjusted Net Income was $14.1 million, or $0.34 per diluted share, an increase of 21.7% from the comparable prior-year period.

For earnings history and earnings-related data on Medpace Holdings (MEDP) click here.

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