Medpace tumbles after bookings disappoint
** Medpace's MEDP.O shares down 13.6% premarket to three-mth low $377.91 after clinical contract research organization's bookings miss expectations
** Co late Mon reported Q2 new business awards decreased 4% yr/yr for net book-to-bill ratio (number of orders received to those fulfilled) of 1.04x
** TD Cowen, which rates MEDP "buy", pointed out that consensus called for book-to-bill ratio of 1.23x
** While unclear what drove bookings weakness, some explanations might include higher cancellations, lower win rates, and/or lower pass-throughs, TD Cowen said in note to clients
** MEDP said Q2 rev grew 14.6% to $528.1 mln and posted adj EPS of $2.75. LSEG estimates were $528.6 mln and $2.54
** Co lowered FY rev guidance to $2.13-$2.18 bln vs prior forecast of $2.15-$2.2 bln, though hiked profit guidance to $11.24-$11.93 from previous outlook of $10.79-$11.47
** In comparison, peer IQVIA IQV.N on Mon reported its Q2 book-to-bill ratio rose to 1.27x from 1.23x in Q1. IQV shares on Mon closed up ~9%
** Through Mon close, MEDP shares up ~43% YTD and up nearly 80% over the past 12 months
(Lance Tupper is a Reuters market analyst. The views expressed are his own)
</body></html>Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
