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What's in Store for Medpace Holdings (MEDP) in Q3 Earnings?

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Medpace Holdings, Inc (MEDP - Free Report) is expected to release third-quarter 2018 results on Oct 29. The company expects steady growth in the oncology space and an expanding biotech client base in the quarter to be reported.

Q2 Results at a Glance

Medpace Holdings reported adjusted earnings of 61 cents per share in the second quarter of 2018, which beat the Zacks Consensus Estimate of 42 cents.

Revenues totaled $170.1 million. The figure surpassed the Zacks Consensus Estimate of $153 million.

Which Way are Estimates Treading?

For the third quarter, the Zacks Consensus Estimate for revenues is pinned at $175.1 million, indicating year-over-year increase of 58.2%. The consensus estimate for earnings is pegged at 63 cents, reflecting year-over-year surge of 57.5%.

The company delivered positive earnings surprises in the trailing four quarters, the average being 24%.

Let’s delve deeper

Factors to Consider

Medpace Holdings’ revenue growth in the quarter to be reported is expected to be driven by strength in oncology, cardiometabolic, antiviral and anti-infectious diseases solutions, or AVAI. The company is focused on serving the core market of small and midsized biopharma customers that represent a large portion of total business.

Buoyed by the strong prospects, the company expects adjusted earnings of $2.51 to $2.62 for 2018. This represents growth of 65.1-72.3%.

The company is also expanding customer base for Early Phase Clinical Research, Phase IIb-III Clinical Research, RWE – Late Phase Clinical Research. Strong prospects these platforms are likely to boost the top line in the third quarter.

The company’s strong global footprint deserves a mention. With dedicated device teams in the United States and Europe, the company is trying to expand its base. In the last reported quarter, management confirmed that it has been witnessing significant expansion in the Belgium facility.

Earnings Whispers

Per our proven model, a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to deliver a positive earnings surprise. This is not the case here as you will see below.

Earnings ESP: Medpace has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank:Medpace carries a Zacks Rank #3.

Please note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is witnessing negative estimate revision.

Stocks Worth a Look

Here are a few medical stocks worth considering as they have the right combination of elements to post an earnings beat in their upcoming quarterly results.

Luminex Corporation has an Earnings ESP of +54.76% and a Zacks Rank #3.

Baxter International Inc (BAX - Free Report) has an Earnings ESP of +0.90% and a Zacks Rank #2.

Masimo Corporation (MASI - Free Report) has an Earnings ESP of +0.98% and a Zacks Rank #2.You can see the complete list of today’s Zacks #1 Rank stocks here.

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