Shares of Medpace Holdings Inc. (MEDP) plummeted 13.24% in intraday trading on Tuesday, as investors reacted negatively to the clinical research company's conservative full-year guidance and signs of slowing business momentum, despite reporting better-than-expected first-quarter results.

Medpace's Q1 2025 performance exceeded analyst expectations, with revenue of $558.6 million surpassing estimates of $527.2 million and earnings per share (EPS) of $3.67 beating the projected $3.06. However, the company's full-year 2025 outlook fell short of market expectations, projecting EPS between $12.26 and $13.04 and revenue between $2.14 billion and $2.24 billion, representing a modest growth of 1.5% to 6.2% over 2024.

Investors' concerns were further amplified by a reported 18.8% decrease in net new business awards to $500.0 million and a lower book-to-bill ratio of 0.90x, suggesting potential challenges in maintaining the company's growth trajectory. Adding to the negative sentiment, Deutsche Bank cut its price target for Medpace from $325 to $280, while maintaining a Hold rating. The combination of conservative guidance, slowing business momentum, and the analyst downgrade appears to have triggered the significant sell-off, overshadowing the company's strong quarterly performance.