Looking at Medpace Holdings, Inc.'s (NASDAQ:MEDP) earnings update in June 2019, analysts seem cautiously bearish, with earnings expected to grow by 20% in the upcoming year relative to the higher past 5-year average growth rate of 72%. Currently with trailing-twelve-month earnings of US$73m, we can expect this to reach US$87m by 2020. Below is a brief commentary around Medpace Holdings's earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here.
Can we expect Medpace Holdings to keep growing?
The longer term view from the 6 analysts covering MEDP is one of positive sentiment. Broker analysts tend to forecast up to three years ahead due to a lack of clarity around the business trajectory beyond this. To understand the overall trajectory of MEDP's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, MEDP's earnings should reach US$113m, from current levels of US$73m, resulting in an annual growth rate of 14%. EPS reaches $3.65 in the final year of forecast compared to the current $2.05 EPS today. In 2022, MEDP's profit margin will have expanded from 10% to 11%.
Future outlook is only one aspect when you're building an investment case for a stock. For Medpace Holdings, I've compiled three key factors you should look at:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Valuation: What is Medpace Holdings worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether Medpace Holdings is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Medpace Holdings? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.