Shares of Medpace Holdings Inc. (MEDP) tumbled 8.3% in post-market trading on Monday, despite the company reporting better-than-expected first-quarter results. The sharp decline appears to be driven by concerns over the company's full-year guidance and slowing business momentum.

For the first quarter of 2025, Medpace reported impressive numbers, with revenue of $558.6 million surpassing analyst estimates of $527.2 million. Earnings per share (EPS) came in at $3.67, significantly beating the expected $3.06. Net income rose to $114.6 million, up from $102.6 million in the same quarter last year.

However, investors seemed to focus on the company's conservative outlook for the full year 2025. Medpace forecasted EPS of $12.26 to $13.04 and revenue between $2.14 billion and $2.24 billion, representing a modest growth of 1.5% to 6.2% over 2024. Adding to concerns, the company reported a decrease in net new business awards, down 18.8% to $500.0 million, and a lower book-to-bill ratio of 0.90x. These factors suggest potential challenges in maintaining the company's growth trajectory, despite the strong quarterly performance, leading to the significant after-hours sell-off.