What happened
Shares of Medpace Holdings (MEDP 1.58%) surged 37.7% on Tuesday after the clinical contract research organization (CRO) delivered strong third-quarter results and issued an optimistic financial forecast for the year ahead.
So what
Medpace's revenue jumped 30% year over year to $383.7 million, easily outpacing Wall Street's estimates of roughly $357 million. The healthcare company, which helps pharmaceutical, biotechnology, and medical device companies conduct clinical trials, also saw its backlog grow by 21% to $2.2 billion as of the end of September.
Despite a challenging economic environment that's making it harder for many research organizations to obtain the funding they need, Medpace was awarded a whopping $470.9 million in new business. That's up from $408 million in the year-ago quarter.
Better still, Medpace's profitability improved. Its net income climbed 36% to $66 million. And its earnings per share, which were boosted by stock buybacks, soared 59% to $2.05. That was far above analysts' estimates for per-share profits of $1.47.
Now what
These solid results prompted Medpace to boost its full-year revenue outlook. Management now expects sales of roughly $1.45 billion, representing year-over-year growth of about 27%. That's up from a prior sales growth goal of approximately 24%.
Medpace also ramped up its profit projections. The company now expects to generate earnings per share of $6.88 to $7.00, up from its previous target of $6.07 to $6.36.
Looking further ahead, Medpace issued an encouraging sales forecast for 2023. The midpoint of its guidance range would see revenue grow by 18% to $1.7 billion next year, with adjusted earnings of about $338 million.
