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In the last reported quarter, the company’s earnings per share (EPS) of $3.20 surpassed the Zacks Consensus Estimate by 30.6%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 12.8%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
During the first quarter of 2024, Medpace witnessed a robust revenue uptick year over year on the back of a strong backlog conversion rate. Its net new business awards were also strong during the period. We expect the company to have continued to register strong backlog addition in the second quarter. On its first-quarter earnings call in April, the company projected backlog conversion of approximately $1.56 billion to revenues in 12 months. This is likely to have reflected in the second-quarter result.
During the first quarter, Medpace’s revenues were boosted partly by growth within the Oncology segment. Given the robust market potential in the Oncology space, we expect the company to continue to benefit from the segment in the second quarter, thereby aiding overall revenues.
Over the past few months, Medpace has increased its investment productivity through automation and process improvements. This is likely to have a continued favorable impact on its second-quarter performance.
On the first-quarter earnings call, Medpace’s management confirmed that the company’s net awards came in below the internal projections. This was driven by increased cancelations, which were above its usual range of below 4.5%. Although the funding environment improved during the first quarter compared with the year-ago period, it remained restricted. The possible impacts of these factors raise our apprehension about the company’s second-quarter performance.
The Estimate Picture
For the second quarter of 2024, the Zacks Consensus Estimate of $529.7 million for total revenues calls for an uptick of 14.9% from the prior-year reported figure.
The consensus estimate for EPS is pegged at $2.52, which indicates an improvement of 30.6% from the prior-year reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see below.
Earnings ESP: Medpace has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Image: Bigstock
Backlog Conversion Likely to Aid Medpace's (MEDP) Q2 Earnings
Medpace Holdings, Inc. (MEDP - Free Report) is scheduled to release second-quarter 2024 results on Jul 22 after the closing bell.
In the last reported quarter, the company’s earnings per share (EPS) of $3.20 surpassed the Zacks Consensus Estimate by 30.6%. Over the trailing four quarters, its earnings outperformed the Zacks Consensus Estimate on all occasions, delivering an earnings surprise of 12.8%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
During the first quarter of 2024, Medpace witnessed a robust revenue uptick year over year on the back of a strong backlog conversion rate. Its net new business awards were also strong during the period. We expect the company to have continued to register strong backlog addition in the second quarter. On its first-quarter earnings call in April, the company projected backlog conversion of approximately $1.56 billion to revenues in 12 months. This is likely to have reflected in the second-quarter result.
During the first quarter, Medpace’s revenues were boosted partly by growth within the Oncology segment. Given the robust market potential in the Oncology space, we expect the company to continue to benefit from the segment in the second quarter, thereby aiding overall revenues.
Medpace Holdings, Inc. Price and EPS Surprise
Medpace Holdings, Inc. price-eps-surprise | Medpace Holdings, Inc. Quote
Over the past few months, Medpace has increased its investment productivity through automation and process improvements. This is likely to have a continued favorable impact on its second-quarter performance.
On the first-quarter earnings call, Medpace’s management confirmed that the company’s net awards came in below the internal projections. This was driven by increased cancelations, which were above its usual range of below 4.5%. Although the funding environment improved during the first quarter compared with the year-ago period, it remained restricted. The possible impacts of these factors raise our apprehension about the company’s second-quarter performance.
The Estimate Picture
For the second quarter of 2024, the Zacks Consensus Estimate of $529.7 million for total revenues calls for an uptick of 14.9% from the prior-year reported figure.
The consensus estimate for EPS is pegged at $2.52, which indicates an improvement of 30.6% from the prior-year reported number.
What Our Model Suggests
Per our proven model, a stock with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, has higher chances of beating estimates. This is not the case here, as you can see below.
Earnings ESP: Medpace has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #2.
Stocks Worth a Look
Here are a few medical stocks worth considering, as these have the right combination of elements to beat on earnings this reporting cycle.
Cencora, Inc. (COR - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank of 2. COR has an estimated long-term growth rate of 10.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cencora’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.1%.
HCA Healthcare, Inc. (HCA - Free Report) has an Earnings ESP of +7.10% and a Zacks Rank of 2. HCA has an estimated long-term growth rate of 10.6%.
HCA Healthcare’s earnings surpassed estimates in three of the trailing four quarters and missed once, with the average surprise being 5.6%.
Moderna, Inc. (MRNA - Free Report) has an Earnings ESP of +6.54% and a Zacks Rank of 2. MRNA has an estimated long-term growth rate of 17.6%.
Moderna’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 55.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.