Medpace Holdings (MEDP) Tops Q2 EPS by 32c, Revenues Beat; Offers FY20 EPS/Revenue Guidance

Medpace Holdings (NASDAQ: MEDP) reported Q2 EPS of $0.73, $0.32 better than the analyst estimate of $0.41. Revenue for the quarter came in at $205 million versus the consensus estimate of $180.53 million.

• Revenue of $205.0 million in the second quarter of 2020 decreased 4.3% from revenue of $214.1 million for the comparable prior-year period, representing a backlog conversion rate of 15.8%.
• Net new business awards were $254.1 million in the second quarter of 2020, representing a decrease of 9.0% from net new business awards of $279.2 million for the comparable prior-year period, which resulted in a net book-to-bill ratio of 1.24x.
• Second quarter of 2020 GAAP net income was $24.1 million, or $0.64 per diluted share, versus GAAP net income of $27.5 million, or $0.73 per diluted share, for the comparable prior-year period. Net income margin was 11.8% and 12.8% for the second quarter of 2020 and 2019, respectively.
• EBITDA was $35.0 million for the second quarter of 2020, a decrease of 12.9% from EBITDA of $40.2 million for the comparable prior-year period, resulting in an EBITDA margin of 17.1%.

GUIDANCE:

Medpace Holdings sees FY2020 EPS of $3.62-$3.83, versus the consensus of $2.36. Medpace Holdings sees FY2020 revenue of $880-920 million, versus the consensus of $828.78 million.

The Company forecasts 2020 revenue in the range of $880.0 million to $920.0 million, representing growth of 2.2% to 6.9% over 2019 revenue of $861.0 million. GAAP net income for full year 2020 is forecasted in the range of $136.0 million to $144.0 million. Additionally, full year 2020 EBITDA is expected in the range of $180.0 million to $190.0 million. Based on forecasted 2020 revenue of $880.0 million to $920.0 million and GAAP net income of $136.0 million to $144.0 million, diluted earnings per share (GAAP) is forecasted in the range of $3.62 to $3.83. This guidance assumes a full year 2020 tax rate of 15.0% to 16.0% 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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