Medpace Holdings (MEDP) Tops Q4 EPS by 10c, Revenues Beat; Offers FY20 EPS/Revenue Mid-Point Guidance Above Consensus

Medpace Holdings (NASDAQ: MEDP) reported Q4 EPS of $0.85, $0.10 better than the analyst estimate of $0.75. Revenue for the quarter came in at $229.9 million versus the consensus estimate of $221.73 million.

• Revenue of $229.9 million in the fourth quarter of 2019 increased 19.7% from revenue of $192.1 million for the comparable prior-year period, representing a backlog conversion rate of 18.7%; Full year 2019 revenue of $861.0 million increased 22.2% from full year 2018.
• Net new business awards were $281.1 million in the fourth quarter of 2019, representing an increase of 21.6% from net new business awards of $231.2 million for the comparable prior-year period, which resulted in a net book-to-bill ratio of 1.22x; Full year 2019 net new business awards of $1,094.4 million increased 21.7% from the prior year.
• Fourth quarter of 2019 GAAP net income was $29.8 million, or $0.78 per diluted share, versus GAAP net income of $22.8 million, or $0.61 per diluted share, for the comparable prior-year period. GAAP net income for the full year 2019 was $100.4 million, or $2.67 per diluted share, versus GAAP net income of $73.2 million, or $1.97 per diluted share, for the full year 2018. Net income margin was 13.0% for the fourth quarter of 2019 and 11.7% for the full year 2019.
• EBITDA was $41.1 million for the fourth quarter of 2019, an increase of 1.2% from EBITDA of $40.7 million for the comparable prior-year period, resulting in an EBITDA margin of 17.9%. EBITDA of $149.6 million for the full year 2019 increased 6.2% from the prior year, resulting in an EBITDA margin of 17.4%.
• Adjusted Net Income was $32.2 million, or $0.85 per diluted share, for the fourth quarter of 2019, an increase of 14.5% from the comparable prior-year period. Adjusted Net Income was $113.3 million for the full year 2019, or $3.02 per diluted share, an increase of 18.7% from the prior year.

GUIDANCE:

Medpace Holdings sees FY2020 EPS of $3.24-$3.34, versus the consensus of $3.28. Medpace Holdings sees FY2020 revenue of $975-1005 million, versus the consensus of $977.76 million.

• The Company forecasts 2020 revenue in the range of $975.0 million to $1,005.0 million, representing growth of 13.2% to 16.7% over 2019 revenue of $861.0 million.
• GAAP net income for full year 2020 is forecasted in the range of $123.4 million to $127.4 million. Additionally, full year 2020 EBITDA is expected in the range of $170.0 million to $178.0 million.
• Based on forecasted 2020 revenue of $975.0 million to $1,005.0 million and GAAP net income of $123.4 million to $127.4 million, diluted earnings per share (GAAP) is forecasted in the range of $3.24 to $3.34.
• This guidance assumes a full year 2020 tax rate of 19.0% to 21.0% and does not reflect the potential impact of any share repurchases the Company may make pursuant to the share repurchase program.

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

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