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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.