NEW YORK, Sept. 27, 2024 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Medpace Holdings, Inc. ("Medpace" or "the Company") (NASDAQ: MEDP). Investors who purchased Medpace securities are encouraged to obtain additional information and assist the investigation by visiting the firm's site: bgandg.com/MEDP. Investigation Details On September 25, 2025, Jefferies downgraded Medpace, citing perceived weaknesses in the Com ...

In the latest market close, Medpace (MEDP) reached $354.65, with a -0.57% movement compared to the previous day. This change lagged the S&P 500's 0.03% gain on the day. On the other hand, the Dow registered a loss of 0.04%, and the technology-centric Nasdaq increased by 0.2%. The provider of outsourced clinical development services's stock has dropped by 9.01% in the past month, falling short of the Medical sector's gain of 2.67% and the S&P 500's gain of 1.54%. The upcoming earnings release of Medpace will ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Let's take a look at what these Wall Street heavyweights have to say about Medpace (MEDP) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Medpace currently has an average brokerage recommendation (ABR ...

Medpace (MEDP) closed the latest trading day at $339.38, indicating a +1.08% change from the previous session's end. This change lagged the S&P 500's 1.16% gain on the day. Elsewhere, the Dow gained 1.2%, while the tech-heavy Nasdaq added 1.16%. Shares of the provider of outsourced clinical development services have depreciated by 13.17% over the course of the past month, underperforming the Medical sector's gain of 4.5% and the S&P 500's gain of 3.48%. Analysts and investors alike will be keeping a close e ...

Core Insights - Medpace Holdings (NASDAQ:MEDP) stock has increased by 69% since the buy rating was issued in January 2023, confirming the initial investment thesis from July 2022 [5] - The company demonstrates strong profitability with a return on invested capital (ROIC) of over 33%, driven by 16% NOPAT margins and a capital turnover of approximately 2.4x [5][8] - Free cash flow (FCF) generation has been robust, ranging from $200 million to $500 million annually since FY'21, with minimal incremental capital employed [5][8] - The company has a solid backlog of approximately $2.9 billion, reflecting a year-over-year increase of 13.7% [10][12] - Management has revised FY24 sales guidance to between $2.125 billion and $2.175 billion, indicating a top-line growth of 13% to 15.3% year-over-year [8][12] Financial Performance - Q2 FY'24 revenues reached $28.1 million, marking a 14.6% year-over-year increase, with year-to-date sales totaling $1.04 billion, up 16.1% year-over-year [8][12] - EBITDA for Q2 is projected between $430 million and $460 million, reflecting a growth of 27% at the upper end, with earnings per share estimated at $11.93 [8][12] - The net new business awards decreased by 4.1% year-over-year to $551 million, with a net book-to-bill ratio of 1.04, indicating a healthy but slightly declining trend [9][12] Valuation and Growth Potential - The intrinsic value of MEDP is estimated to exceed $400 per share, supported by a compounding growth rate of 5% in intrinsic value and a potential reinvestment of 15% of cumulative NOPAT at 20-30% incremental returns [19][22] - The company has maintained a high ROIC, which is expected to attract higher EV/IC multiples, enhancing its market valuation [16][22] - Future projections indicate that economic earnings could reach approximately $287.34 million in FY'24, with a per-share value of $9.33 [25]

Core Viewpoint - Medpace Holdings, Inc. has faced significant stock price decline following disappointing second quarter 2024 financial results, raising concerns about potential violations of federal securities laws and unlawful business practices [2][1]. Financial Performance - On July 22, 2024, Medpace reported second quarter 2024 financial results that significantly missed market expectations [2]. - The company experienced disproportionately high cancellations in June 2024, attributed to factors such as reprioritization, impaired sponsor liquidity, and a large pharmaceutical acquisition that led to work being shifted to a preferred provider [2]. Stock Market Reaction - Following the earnings announcement, Medpace's stock price dropped by $79.88, or 18.3%, closing at $357.30 per share on July 23, 2024, resulting in losses for investors [2]. Legal Investigation - Bragar Eagel & Squire, P.C. is investigating potential claims against Medpace on behalf of its stockholders regarding possible violations of federal securities laws and other unlawful business practices [1].

Core Insights - Medpace Holdings, Inc. is under investigation by Hagens Berman due to concerns over its financial performance and public statements, particularly regarding its growth assurances that were contradicted by its latest earnings report [1][3] Financial Performance - On July 23, Medpace reported a significantly lower-than-expected book-to-bill ratio for Q2, attributed to "elevated project cancellations," which has raised concerns among investors and analysts [2] - The unexpected results led to an 18% drop in Medpace's share price on the announcement day, described by William Blair analyst Max Smock as "shocking" and "alarming" due to the stark discrepancy from prior guidance [3] Investigation Details - Hagens Berman is investigating whether Medpace misled investors regarding the health of its business, with a focus on potential violations of U.S. securities laws [4] - The firm is encouraging individuals with knowledge of the situation or who have suffered losses to come forward and assist in the investigation [4]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Medpace (MEDP) being highlighted as a strong candidate due to its favorable growth metrics and earnings estimates [1][2]. Earnings Growth - Medpace has a historical EPS growth rate of 32.2%, with projected EPS growth of 27.1% for the current year, significantly outperforming the industry average of 15.7% [3]. - The Zacks Consensus Estimate for Medpace's current year earnings has increased by 0.4% over the past month, indicating positive earnings estimate revisions [5][10]. Cash Flow Growth - Medpace's year-over-year cash flow growth stands at 15.5%, which is notably higher than the industry average of -14.2% [4]. - The company's annualized cash flow growth rate over the past 3-5 years is 19.4%, compared to the industry average of 13.4% [18]. Growth Score and Rankings - Medpace has achieved a Zacks Rank of 2 (Buy) and a Growth Score of A, reflecting its strong growth characteristics and favorable earnings estimate revisions [10][11]. - Stocks with a combination of a Growth Score of A or B and a Zacks Rank of 1 (Strong Buy) or 2 (Buy) have historically outperformed the market [11]. Investment Outlook - The combination of strong earnings and cash flow growth positions Medpace well for potential outperformance, making it an attractive option for growth investors [20].

PART I — FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the periods ended June 30, 2024, and 2023 It includes the balance sheets, statements of operations, comprehensive income, shareholders' equity, and cash flows, along with detailed notes explaining the basis of presentation, accounting policies, and specific account details such as revenue by therapeutic area and related party transactions [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, the company's total assets grew to $1.92 billion from $1.66 billion at year-end 2023, primarily driven by a more than doubling of cash and cash equivalents to $510.9 million Total liabilities increased modestly to $1.16 billion, while total shareholders' equity saw significant growth to $763.6 million from $559.0 million over the same period Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$1,920,048** | **$1,656,828** | | Cash and cash equivalents | $510,894 | $245,449 | | Total current assets | $872,523 | $593,828 | | **Total Liabilities** | **$1,156,449** | **$1,097,878** | | Advanced billings | $638,417 | $559,860 | | **Total Shareholders' Equity** | **$763,599** | **$558,950** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company demonstrated strong year-over-year growth For the second quarter of 2024, net revenue increased 14.6% to $528.1 million, and net income rose 44.7% to $88.4 million For the first six months, net revenue grew 16.1% to $1.04 billion, with net income up 42.5% to $190.9 million Diluted EPS for Q2 2024 was $2.75, up from $1.93 in Q2 2023 Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenue, net** | **$528,104** | **$460,868** | **$1,039,148** | **$894,942** | | Income from operations | $105,150 | $78,393 | $209,219 | $164,597 | | **Net income** | **$88,351** | **$61,068** | **$190,942** | **$133,962** | | Diluted EPS | $2.75 | $1.93 | $5.96 | $4.20 | [Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For the second quarter of 2024, comprehensive income was $87.8 million, slightly below the net income of $88.4 million due to a $0.5 million loss from foreign currency translation adjustments For the six-month period, comprehensive income was $188.4 million, impacted by a $2.5 million foreign currency translation loss Comprehensive Income (in thousands) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Net income | $88,351 | $61,068 | $190,942 | $133,962 | | Foreign currency translation adjustments | ($548) | $120 | ($2,517) | $1,198 | | **Comprehensive income** | **$87,803** | **$61,188** | **$188,425** | **$135,160** | [Condensed Consolidated Statements of Shareholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders%27%20Equity) Shareholders' equity increased from $559.0 million at December 31, 2023, to $763.6 million as of June 30, 2024 This growth was primarily driven by net income of $190.9 million recognized during the first six months of 2024 - Total shareholders' equity grew to **$763.6 million** at June 30, 2024, from **$559.0 million** at December 31, 2023[13](index=13&type=chunk) - The increase was mainly due to **$190.9 million** in net income for the first six months of 2024, which significantly reduced the accumulated deficit[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2024, net cash from operating activities was $269.1 million, a significant increase from $162.6 million in the prior-year period, mainly due to higher net income and a large increase in advanced billings The company ended the period with $510.9 million in cash and cash equivalents, up from $245.4 million at the start of the year Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $269,074 | $162,594 | | Net cash used in investing activities | ($10,260) | ($17,970) | | Net cash provided by (used in) financing activities | $8,326 | ($134,893) | | **Increase in cash** | **$265,445** | **$10,873** | | **Cash at end of period** | **$510,894** | **$39,138** | [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail the company's business as a global clinical research organization and key accounting items Notable points include no share repurchases in H1 2024, with $308.8 million remaining authorized Remaining performance obligations (backlog) stood at $3.2 billion Revenue is disaggregated by therapeutic area, with Oncology being the largest contributor at $163.0 million for Q2 2024 Significant related-party transactions for services and leases are also disclosed - The company did not execute any share repurchases during the first six months of 2024 As of June 30, 2024, **$308.8 million** remains authorized under the repurchase program[19](index=19&type=chunk) - As of June 30, 2024, the Company had approximately **$3.2 billion** of performance obligations remaining to be performed for active projects[34](index=34&type=chunk) Revenue by Therapeutic Area (in thousands) | Therapeutic Area | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Oncology | $162,952 | $147,089 | $318,150 | $289,040 | | Other | $112,432 | $101,055 | $220,832 | $188,159 | | Metabolic | $106,302 | $87,860 | $209,941 | $174,700 | | Cardiology | $60,699 | $51,130 | $116,336 | $97,747 | | Central Nervous System | $46,519 | $37,726 | $90,655 | $76,423 | | AVAI | $39,200 | $36,008 | $83,234 | $68,873 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports strong financial performance, with Q2 2024 revenue up 14.6% YoY to $528.1 million, driven by broad-based growth in key therapeutic areas Net new business awards were $551.0 million for the quarter, contributing to a 13.7% YoY increase in backlog to $2.92 billion The company's liquidity is robust, with cash increasing to $510.9 million and no outstanding debt Operating income grew significantly due to revenue growth outpacing the increase in direct and SG&A costs Key Performance Metrics (in millions) | Metric | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Net New Business Awards | $551.0 | $574.8 | $1,166.5 | $1,130.6 | - Backlog increased by **13.7%** to **$2,924.9 million** as of June 30, 2024, compared to **$2,571.9 million** as of June 30, 2023[79](index=79&type=chunk) - The increase in revenue for Q2 and H1 2024 was **broad-based**, primarily driven by growth within the Metabolic, Oncology, and Other uncategorized therapeutic areas[85](index=85&type=chunk) - The company's **liquidity remains strong**, with cash and cash equivalents of **$510.9 million** and **no indebtedness** as of June 30, 2024[92](index=92&type=chunk)[104](index=104&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=26&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes to its quantitative and qualitative disclosures about market risk compared to those described in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - There have been **no material changes** to the company's market risk disclosures since the 2023 Annual Report on Form 10-K[108](index=108&type=chunk) [Item 4. Controls and Procedures](index=26&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on an evaluation conducted by management, including the CEO and CFO, the company's disclosure controls and procedures were deemed effective as of June 30, 2024 There were no material changes in internal control over financial reporting during the quarter - Management concluded that **disclosure controls and procedures were effective** as of the end of the reporting period, providing reasonable assurance that required information is recorded and reported in a timely manner[110](index=110&type=chunk) - **No changes occurred** in the company's internal control over financial reporting during the second quarter of 2024 that have materially affected, or are reasonably likely to materially affect, these controls[112](index=112&type=chunk) PART II — OTHER INFORMATION [Item 1. Legal Proceedings](index=27&type=section&id=Item%201.%20Legal%20Proceedings) The company is party to various legal proceedings incidental to its business Management does not believe the resolution of these matters is reasonably likely to have a material adverse effect on its financial statements - Ongoing legal proceedings are considered incidental to business and are **not expected to have a material adverse effect** on the company's financial condition[113](index=113&type=chunk) [Item 1A. Risk Factors](index=27&type=section&id=Item%201A.%20Risk%20Factors) The company reports no significant changes from the risk factors that were previously disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - There have been **no significant changes** from the risk factors disclosed in the company's 2023 Annual Report on Form 10-K[114](index=114&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=27&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is reported as 'Not applicable,' indicating no unregistered sales of equity securities or specific use of proceeds from registered securities during the reporting period - This section is marked as **'Not applicable'**[115](index=115&type=chunk) [Item 3. Defaults Upon Senior Securities](index=27&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports 'None,' indicating there were no defaults upon senior securities during the period - The company reports **'None'** for this item[116](index=116&type=chunk) [Item 4. Mine Safety Disclosures](index=27&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is reported as 'Not applicable' - This section is marked as **'Not applicable'**[117](index=117&type=chunk) [Item 5. Other Information](index=27&type=section&id=Item%205.%20Other%20Information) This section discloses trading arrangements by company officers CEO August J Troendle adopted, modified, and then terminated a non-Rule 10b5-1 plan to sell up to 190,000 shares Executive Vice President Susan E Burwig adopted a non-Rule 10b5-1 plan to sell up to 7,681 shares - CEO August J. Troendle adopted a non-Rule 10b5-1 trading plan on April 25, 2024, to sell up to **190,000 shares**, modified the price limit on May 22, and terminated the plan on May 30, 2024[119](index=119&type=chunk)[120](index=120&type=chunk)[121](index=121&type=chunk) - Executive VP of Operations, Susan E. Burwig, adopted a non-Rule 10b5-1 trading plan on June 5, 2024, to sell up to **7,681 shares**[119](index=119&type=chunk)[121](index=121&type=chunk) [Item 6. Exhibits](index=28&type=section&id=Item%206.%20Exhibits) This section provides an index of the exhibits filed or furnished as part of the quarterly report Key exhibits include the Restated Certificate of Incorporation, CEO and CFO certifications (Rule 13a-14(a) and Section 1350), and Inline XBRL documents - The report includes an **index of all exhibits filed**, such as corporate governance documents, officer certifications, and interactive data files (XBRL)[122](index=122&type=chunk)[125](index=125&type=chunk)

| --- | --- | |-------|-------| | | | | | | | | | This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation, statements regarding our forecasted financial results and the effective tax rate used for non-GAAP adjustment purposes. In this context, forward-looking state ...