Medpace Holdings easily beat Wall Street's first-quarter projections and boosted its full-year outlook, and MEDP stock rocketed early Tuesday.
Medpace is a contract research organization, or CRO. It helps companies run the clinical studies they need to gain approval of new drugs and medical devices. During the March quarter, Medpace earned $2.27 per share, on an adjusted basis, and reported $434.1 million in sales.
Earnings jumped 9% and topped forecasts by 45 cents, according to FactSet. Sales surged more than 31% and came in above expectations for $401.8 million.
On today's stock market, MEDP stock soared 11.2% higher, closing at 208.27. Medpace shares surged above their 50-day moving average for the first time in two months, according to MarketSmith.com.
MEDP Stock: Bigger Increase In Sales Now Expected
Importantly, Medpace said its backlog grew almost 18% to $2.46 billion. The company's backlog represents agreements that will eventually churn out revenue. Medpace says it converted close to 19% of its backlog in the first quarter.
Medpace also raised its guidance for the year and now expect sales to grow about 20%-24% to roughly $1.75 billion to $1.81 billion. Previously, the company projected 16%-20% sales growth.
MEDP stock now has a best-possible EPS Rating of 99, which reflects its strong profitability. Shares also have a strong Composite Rating of 88 out of a total 99. This puts the stock's technical and fundamental measures in the top 12% of all stocks, according to IBD Digital.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
