Medpace Holdings, Inc. Beat Revenue Forecasts By 12%: Here's What Analysts Are Forecasting Next

As you might know, Medpace Holdings, Inc. (NASDAQ:MEDP) just kicked off its latest second-quarter results with some very strong numbers. Medpace Holdings beat expectations, with revenue hitting US$603m (12% ahead of estimates) and EPS reaching US$3.10 (a 4.2% beat). Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Medpace Holdings' twelve analysts is for revenues of US$2.40b in 2025. This would reflect a modest 7.4% increase on its revenue over the past 12 months. Statutory earnings per share are expected to dip 5.3% to US$14.10 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$2.18b and earnings per share (EPS) of US$12.74 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a solid gain to earnings per share in particular.

Check out our latest analysis for Medpace Holdings

With these upgrades, we're not surprised to see that the analysts have lifted their price target 28% to US$385per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Medpace Holdings at US$490 per share, while the most bearish prices it at US$297. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Medpace Holdings' revenue growth is expected to slow, with the forecast 15% annualised growth rate until the end of 2025 being well below the historical 20% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.3% per year. Even after the forecast slowdown in growth, it seems obvious that Medpace Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Medpace Holdings' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Medpace Holdings going out to 2027, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Medpace Holdings that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.