Medpace Earnings: Robust Outsourcing Demand Drives Growth; Raising Fair Value Estimate

Medpace reported healthy year-end results highlighted by revenue of $1.88 billion, representing a 29% increase from the prior year. Demand for Medpace’s clinical trial services has been robust, as the funding environment is improving and several stalled projects are now moving forward. We have updated our forecast to reflect Medpace’s continued strong performance, and we have raised our fair value estimate about 9% to $261 per share from $239. We continue to have a positive long-term outlook for Medpace, and we forecast to high-single-digit to low-double-digit revenue growth over our 10-year forecast period.