Medpace Earnings: Robust Demand Exceeds Expectations; Raising Fair Value Estimate to $239

Medpace reported robust third-quarter results highlighted by revenue of $492 million, representing a 28% increase from the prior year. Management provided initial guidance for 2024 with revenue expected to growth about 15.5% year over year. We have updated our forecast to reflect Medpace’s continued strong performance thanks to healthy demand for its clinical trial services. We’ve raised our fair value estimate about 5% to $239 per share from $227, and we maintain our narrow economic moat rating. We continue to have a positive long-term outlook for Medpace, and we forecast mid-double-digit to high-single-digit revenue growth over our 10-year forecast period.