Top-Notch Medpace Smashes Forecasts And Rockets 19% Toward A Record
The company netted more than $600 million in new business awards, up 30%.
Medpace Holdings' (MEDP), which has a large market capitalization, blew away Wall Street's expectations for the third quarter. The stock of MEDP soared above its 50-day moving median on Tuesday.
The shares of the contract-research organization soared 18.8% in today's midday stock market trading. According to MarketSmith.com, Medpace is making progress towards its previous record of 282.73, which was achieved on September 14.
In the third quarter of 2009, Medpace generated $492.50 million in revenue. This equates to $2.22 earnings per share. The sales increased by more than 28 percent while earnings grew 8%. Both measures exceeded the FactSet-surveyed analysts' forecasts of earnings of $2.05 per share and sales of $475.8 millions.
Medpace reported that it had received $611,5 million in new business awards for the third quarter. This is an increase of almost 30% over the previous year, and significantly above FactSet's forecasts of $585.4 millions.
MEDP Stock Leads a Low-Rated Group
Medpace is a member of the Medical-Research Equipment/Services group. The group is ranked No. Investor's Business Daily tracks 197 groups. MEDP outranks 44 of its peers in this industry group.
Contract research organizations, or CROs, help companies and researchers conduct the clinical trials necessary to obtain approval of new drugs.
Medpace has raised its profit forecast and now expects $8.54-$8.66 per share. This is an increase of 33 cents, at the midpoint, from the company's guidance made three months ago. Analysts at MEDP expect earnings of $8.43 per share this year.
Medpace expects its full-year revenue to increase by 28.1% to 29,5%, to between $1.87 and $1.89 billion. This is an increase over the previous outlook of $1.84 to $1.86 Billion in sales. Analysts predict $1.87 billion of sales.
According to IBD Digital, MEDP stock has a high rating with a perfect EPS Score of 99. Medpace's shares are ranked in the top 1% for profitability, regardless of industry. The stock has also a Composite rating of 90 which is a measure of both technical and fundamental strength.