Medpace Holdings Inc (NASDAQ:MEDP): What Are The Future Prospects?
Looking at Medpace Holdings Inc’s (NASDAQ:MEDP) earnings update in December 2017, it seems that analyst expectations are fairly bearish, with profits predicted to rise by 19.90% next year against the higher past 5-year average growth rate of 41.76%. By 2019, we can expect Medpace Holdings’s bottom line to reach US$46.91M, a jump from the current US$39.12M. 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. Investors wanting to learn more about other aspects of the company should research its fundamentals here. Check out our latest analysis for Medpace Holdings
What can we expect from Medpace Holdings in the longer term?
The longer term expectations from the 7 analysts of MEDP is tilted towards the positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To reduce the year-on-year volatility of analyst earnings forecast, I’ve inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line.
By 2021, MEDP’s earnings should reach US$78.25M, from current levels of US$39.12M, resulting in an annual growth rate of 22.06%. EPS reaches $2.14 in the final year of forecast compared to the current $1 EPS today. Growth in the bottom line seems to suggest cost cutting activities, as revenues is expected to grow much slower than earnings. Margins is currently sitting at 10.12%, which is expected to expand to 13.43% by 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Medpace Holdings, I’ve compiled three pertinent factors you should further research:
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!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
