Investors looking for stocks in the Medical Services sector might want to consider either Organon (OGN) or Medpace (MEDP) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy that targets compani ...

Core Viewpoint - The market anticipates Medpace (MEDP) will report a year-over-year increase in earnings driven by higher revenues in its upcoming earnings report for the quarter ended June 2025 [1][3]. Earnings Expectations - The consensus EPS estimate for Medpace is $3.00 per share, reflecting a year-over-year increase of +9.1% [3]. - Expected revenues for the quarter are $541.19 million, which is a 2.5% increase from the same quarter last year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 0.81%, indicating a reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Medpace is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.91%, suggesting a bearish outlook from analysts [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [9][10]. - Medpace currently holds a Zacks Rank of 3, which complicates the prediction of an earnings beat given the negative Earnings ESP [12]. Historical Performance - In the last reported quarter, Medpace exceeded the expected earnings of $3.06 per share by delivering $3.67, resulting in a surprise of +19.93% [13]. - The company has successfully beaten consensus EPS estimates in the last four quarters [14]. Conclusion - While Medpace does not appear to be a strong candidate for an earnings beat based on current estimates, investors should consider other factors before making investment decisions [17].

Core Insights - Investors are comparing Organon (OGN) and Medpace (MEDP) to determine which stock offers better value for investment [1] Valuation Metrics - Organon has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to Medpace, which has a Zacks Rank of 3 (Hold) [3] - OGN's forward P/E ratio is significantly lower at 2.65, while MEDP's forward P/E is 25.65, suggesting OGN may be undervalued [5] - The PEG ratio for OGN is 1.01, indicating a better valuation relative to its expected earnings growth compared to MEDP's PEG ratio of 5.88 [5] - OGN's P/B ratio stands at 4.87, while MEDP's P/B ratio is much higher at 15.79, further supporting OGN's valuation advantage [6] - OGN has a Value grade of A, while MEDP has a Value grade of C, indicating a stronger overall value proposition for OGN [6]

The latest trading session saw Medpace (MEDP) ending at $305.90, denoting a +2.54% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow saw an upswing of 0.25%, while the tech-heavy Nasdaq appreciated by 0.63%.Shares of the provider of outsourced clinical development services have depreciated by 4.91% over the course of the past month, underperforming the Medical sector's gain of 3.49% and the S&P 500's gain of 6.29%.The investm ...

Explore the exciting world of Medpace Holdings (MEDP 1.11%) with our expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!*Stock prices used were the prices of April 23, 2025. The video was published on May 27, 2025. ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________ FORM 10-Q ___________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number: 001-37856 _____________ ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $558.6 million, representing a year-over-year increase of 9.3% [10][12] - EBITDA was $118.6 million, an increase of 2.6% compared to $115.7 million in Q1 2024, with an EBITDA margin of 21.2% [13] - Net income for Q1 2025 was $114.6 million, up 11.7% from $102.6 million in the prior year, with net income per diluted share increasing to $3.67 from $3.20 [13][14] - Cash flow from operating activities was $125.8 million, with $441.4 million in cash as of March 31, 2025 [15] Business Line Data and Key Metrics Changes - Net new business awards entering backlog decreased 18.8% year-over-year to $500 million, resulting in a net book-to-bill ratio of 0.90% [10][11] - Ending backlog as of March 31, 2025, was approximately $2.8 billion, a decrease of 2.1% from the prior year [11] Market Data and Key Metrics Changes - The company noted a strong RFP flow in Q1, but the quality was variable, and decisions were slowing [8] - The company anticipates improved backlog growth with book-to-go ratios above 1.15% in Q3 and Q4, contingent on moderating cancellations and an improved business climate [9] Company Strategy and Development Direction - The management indicated a focus on improving backlog growth and addressing pipeline cancellations, which have been a significant concern [8][9] - The company is maintaining its guidance for 2025 total revenue in the range of $2.14 billion to $2.24 billion, reflecting growth of 1.5% to 6.2% over 2024 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about elevated cancellation rates, particularly in pre-backlog, which have limited booking levels [28][30] - The management remains cautiously optimistic about achieving a book-to-bill ratio of 1.15% in the second half of the year, depending on the business environment [26][32] Other Important Information - The company repurchased approximately 1.19 million shares for $389.8 million during the first quarter, with $344.8 million remaining under the share purchase authorization program [15][16] - The effective tax rate for 2025 is expected to be between 15.5% and 16.5% [17] Q&A Session Summary Question: Comments on RFPs and quality - Management acknowledged increased price competition and a broader look at CROs due to a slowdown in the industry, impacting the quality of RFPs [21][23] Question: Book-to-bill expectations - Management indicated that achieving a book-to-bill ratio of 1.15% in the second half of the year is possible but highly improbable without a reduction in cancellations [26][30] Question: Impact of FDA turnover on client behavior - Management noted that while there is concern about the future due to FDA turnover, there is no evidence of immediate impact on client behavior [63][64] Question: Cancellation rates and trends - Management does not disclose specific cancellation rates but indicated that cancellations are broadly centered around funding issues [51][52] Question: Share repurchase strategy - Management stated that they will continue to take an opportunistic approach to share repurchases, looking for opportunities as they arise [55] Question: Backlog burn and execution improvements - Management explained that the increase in backlog burn was primarily due to accelerated revenue and higher reimbursable costs, not changes in execution [70][71] Question: Concerns about biotech clients with negative enterprise value - Management expressed that funding difficulties are a larger concern than drug failures, and they do not track negative enterprise values [58][60] Question: Revenue guidance and pass-through costs - Management indicated that the increase in pass-through costs was unexpected and influenced revenue growth in Q1, but they expect similar levels for the year [121][123]

FORWARD LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES Q1 2025 FINANCIAL RESULTS APRIL 21, 2025 Forward-Looking Statements 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 u ...

Financial Data and Key Metrics Changes - Revenue for Q1 2025 was $558.6 million, representing a year-over-year increase of 9.3% [10][12] - EBITDA was $118.6 million, an increase of 2.6% compared to $115.7 million in Q1 2024, with an EBITDA margin of 21.2% [13] - Net income for Q1 2025 was $114.6 million, up 11.7% from $102.6 million in the prior year, with net income per diluted share increasing to $3.67 from $3.20 [13][14] - Cash flow from operating activities was $125.8 million, with $441.4 million in cash as of March 31, 2025 [15] Business Line Data and Key Metrics Changes - Net new business awards entering backlog decreased 18.8% year-over-year to $500 million, resulting in a net book-to-bill ratio of 0.9% [10][11] - Ending backlog as of March 31, 2025, was approximately $2.8 billion, a decrease of 2.1% from the prior year [11] Market Data and Key Metrics Changes - The company noted a strong RFP flow in Q1, but the quality was variable, and decisions were slowing [8] - The company anticipates improved backlog growth with book-to-go ratios above 1.15% in Q3 and Q4, contingent on moderating cancellations and an improved business climate [9] Company Strategy and Development Direction - The management indicated a focus on improving backlog growth and addressing pipeline cancellations, which have been a significant concern [8][9] - The company is maintaining its guidance for 2025 total revenue in the range of $2.14 billion to $2.24 billion, reflecting growth of 1.5% to 6.2% over 2024 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about elevated cancellation rates, particularly in pre-backlog, which have limited booking levels [28][30] - The management remains cautiously optimistic about achieving a book-to-bill ratio of 1.15% in the second half of the year, depending on the business environment [26][32] Other Important Information - The company repurchased approximately 1.19 million shares for $389.8 million during the first quarter, with $344.8 million remaining under the share purchase authorization program [15][16] - The effective tax rate for 2025 is expected to be between 15.5% and 16.5% [17] Q&A Session Summary Question: Comments on RFPs and quality - Management acknowledged increased price competition and a broader look at CROs due to a slowdown in the industry, impacting the quality of RFPs [21][24] Question: Book-to-bill potential in a stable environment - Management indicated that if the environment remains stable, the book-to-bill ratio could be around 1.0% in the second half, with potential for improvement if conditions change [42][43] Question: Cancellations and their impact - Management did not disclose specific cancellation rates but noted that cancellations were broadly centered around funding issues [51][52] Question: Share repurchase strategy - Management stated they would continue to take an opportunistic approach to share repurchases, looking for opportunities as they arise [55] Question: Impact of FDA turnover on client discussions - Management noted that while there is concern about FDA turnover, it has not yet resulted in observable changes in client behavior [63][64] Question: Backlog burn and its sustainability - Management indicated that the increase in backlog burn was primarily due to accelerated revenue and higher reimbursable costs, rather than changes in execution [68][70] Question: Concerns about biotech clients with negative enterprise value - Management expressed that funding difficulties are a larger concern than drug failures, and they do not track negative enterprise value specifically [58][60] Question: Future hiring plans - Management is targeting mid-single digit headcount growth, contingent on the business environment [76][85]

Core Viewpoint - Medpace (MEDP) reported quarterly earnings of $3.67 per share, exceeding the Zacks Consensus Estimate of $3.06 per share, and showing an increase from $3.20 per share a year ago, indicating a strong performance in the clinical development services sector [1][2]. Financial Performance - The company achieved revenues of $558.57 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.37% and up from $511.04 million in the same quarter last year [2]. - Medpace has consistently outperformed consensus EPS estimates over the last four quarters, achieving earnings surprises of 19.93% and 23.57% in the most recent quarters [1][2]. Stock Performance - Medpace shares have declined approximately 10.8% since the beginning of the year, compared to a decline of 10.2% for the S&P 500 [3]. - The current Zacks Rank for Medpace is 3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [6]. Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $3.03, with projected revenues of $535.07 million, and for the current fiscal year, the estimate is $12.21 on revenues of $2.14 billion [7]. - The trend of earnings estimate revisions for Medpace is mixed, which could change following the recent earnings report [6]. Industry Context - The Medical Services industry, to which Medpace belongs, is currently ranked in the top 35% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]. - The performance of Medpace's stock may be influenced by the overall outlook for the industry [8].