Note: EPS may not be comparable

Medpace Holdings (NASDAQ: MEDP) reported Q4 EPS of $0.39, $0.01 better than the analyst estimate of $0.38. Revenue for the quarter came in at $99.4 million versus the consensus estimate of $97.36 million.

• Net service revenue of $99.4 million in the fourth quarter increased 4.3% from the comparable prior-year period (backlog conversion rate of 19.5%); Full year 2017 net service revenue of $386.5 million increased 4.3% from full year 2016.
• Net new business awards of $114.7 million in the fourth quarter increased 15.1% from the comparable prior-year period, which resulted in a net book-to-bill ratio of 1.15x; Full year 2017 net new business awards of $426.1 million decreased 0.2% from the prior year.
• Fourth quarter 2017 GAAP net income was $11.3 million, or $0.30 per diluted share, versus a GAAP net loss of $0.0 million, or ($0.00) per diluted share, for the comparable prior-year period. GAAP net income for the full year 2017 was $39.1 million, or $0.98 per diluted share, versus GAAP net income of $13.4 million, or $0.37 per diluted share, for the full year 2016. Net income margin was 11.4% for the fourth quarter of 2017 and 10.1% for the full year 2017.
• Adjusted EBITDA of $27.0 million for the fourth quarter decreased 1.7% from the comparable prior-year period, resulting in an Adjusted EBITDA margin of 27.2%; Adjusted EBITDA of $108.0 million for the full year 2017 decreased 4.7% from the prior year, resulting in an Adjusted EBITDA margin of 28.0%.
• Adjusted Net Income of $14.8 million for the fourth quarter, or $0.39 per diluted share, increased 3.2% from the comparable prior-year period; Adjusted Net Income was $60.5 million for the full year 2017, or $1.52 per diluted share, an increase of 8.5% from the prior year.

Financial Guidance

On January 1, 2018, the Company adopted ASC 606 “Revenue from Contracts with Customers.” For full-year 2018, the Company is providing guidance under ASC 605, excluding the impact of the new accounting standard, for comparability purposes. The Company forecasts 2018 net service revenue in the range of $412 million to $428 million, representing growth of 6.6% to 10.7% over 2017 net service revenue of $386.5 million. GAAP net income for full year 2018 is forecasted in the range of $43.9 million to $48.1 million. Additionally, full-year 2018 Adjusted EBITDA is expected in the range of $102 million to $108 million.

Based on forecasted 2018 net service revenue of $412 million to $428 million and GAAP net income of $43.9 million to $48.1 million, diluted earnings per share (GAAP) is forecasted in the range of $1.21 to $1.33. Adjusted Net Income for 2018 is forecasted in the range of $66.0 million to $70.0 million, compared to Adjusted Net Income of $60.5 million for 2017. Furthermore, Adjusted Net Income per diluted share for 2018 is expected in the range of $1.82 to $1.93 per share.

GUIDANCE:

Medpace Holdings sees FY2018 EPS of $1.82-$1.93, versus the consensus of $1.80.

For earnings history and earnings-related data on Medpace Holdings (MEDP) click here.