SerpApi.Org
Medpace HoldingsMEDP stock surged by double digits late Wednesday, helped by a big bookings beat, rebounding from a poor start to the year.
The contract research organization, or CRO, put up a book-to-bill ratio of 1.13x, easily above expectations for 0.95x to 1.01x, according to Leerink Partners analyst Michael Cherny. That means Medpace received more new orders than it can currently fulfill, indicating strong demand.
The news was a breath of fresh air following a major bookings miss in the first quarter. Then, the book-to-bill ratio came in at 0.88x and Medpace stock plummeted to a nine-month low.
"While trends aren't established by one quarter alone, the meaningful sequential improvement in net bookings provides some comfort around MEDP's competitive positioning in what is by all accounts a strong biotech funding environment that has included increases focus on business expansion from CRO peers," Cherny said in a report.
In after-hours trades on the stock market today, Medpace stock zipped up 19% to 628.50. Shares are forming a lengthy cup base with an entry at 628.92, MarketSurge charts show.
Medpace Hikes 2026 Outlook
In total, adjusted earnings came in at $4.25 per share, beating forecasts ranging between $4.01 and $4.09 a share. Total revenue climbed more than 17% to $707.3 million, ahead of projections for $689.7 million to $694.2 million, Cherny said.
Medpace netted $795.7 million in new business awards, also ahead of forecasts, and put up a solid backlog burn rate of 24.1%.
For the year, Medpace now expects to earn $17.25 to $17.95 a share, up 51 cents per share from the guidance issued three months ago. Medpace also hiked its revenue forecast to roughly $2.81 billion to $2.89 billion, also ahead of expectations.
Cherny kept his market perform rating on Medpace stock ahead of its earnings conference call early Thursday.
Get IBD's Daily Newsletter At Investors.com
Follow Allison Gatlin on X/Twitter at @AGatlin_IBD.
YOU MAY ALSO LIKE:
Danaher Plummets After One Segment Comes In 'Surprisingly Soft'
Straight Out Of A Soap Opera: Biotech Exec Arrested After 21 Years On The Run
Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks
Profit From Short-Term Trends With SwingTrader
Looking For The Next Apple Or Amazon? Start With These S&P 500-Beating Lists
