CINCINNATI - Medpace Holdings, Inc. (NASDAQ:MEDP) saw its shares plunge 12.29% after the clinical contract research organization reported third-quarter revenue that fell short of analyst expectations and provided weaker-than-expected guidance for the full year.
The company reported Q3 revenue of $533.3 million, up 8.3% year-over-year but below the consensus estimate of $543.08 million. Adjusted earnings per share came in at $3.01, beating expectations of $2.78.
For the full year 2024, Medpace now expects revenue between $2.09 billion and $2.13 billion, below the $2.14 billion analysts were projecting. The company forecasts earnings per share of $11.71 to $12.09, compared to the consensus of $11.79.
"While we saw solid revenue growth in Q3, our results came in below expectations due to slower conversion of backlog," said CEO August Troendle. "We're taking steps to improve execution but expect some near-term headwinds to persist into 2024."
Medpace's net new business awards declined 12.7% year-over-year to $533.7 million in Q3. However, the company's backlog grew 8.8% to $2.93 billion.
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