Latest news with #clinicalresearch
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a day ago
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Why Are Fortrea (FTRE) Shares Soaring Today
What Happened? Shares of clinical research company Fortrea Holdings (NASDAQ:FTRE) jumped 24.1% in the afternoon session after positive earnings reports from industry peers lifted the entire contract research organization sector. The rally was sparked by strong second-quarter results from two major players in the space, IQVIA and Medpace, which both reported earnings and revenue that beat analyst expectations. Medpace, in particular, surged after significantly raising its full-year guidance for revenue and earnings. This wave of good news from competitors boosted investor confidence across the sector, leading to gains for other contract research organizations (CROs) like Fortrea. A CRO provides outsourced research and development services to the pharmaceutical and biotechnology industries. Fortrea is scheduled to report its own second-quarter financial results on August 6, 2025. Is now the time to buy Fortrea? Access our full analysis report here, it's free. What Is The Market Telling Us Fortrea's shares are extremely volatile and have had 53 moves greater than 5% over the last year. But moves this big are rare even for Fortrea and indicate this news significantly impacted the market's perception of the business. The previous big move we wrote about was 4 days ago when the stock dropped 9.2% as several negative developments weighed on the sector. Weakness in managed care providers was a significant factor, with companies like Elevance Health and Humana seeing declines due to an analyst downgrade and a lost lawsuit regarding Medicare bonus payments, respectively. Additionally, some pharmaceutical and biotech companies experienced sharp drops following unfavorable news; for instance, Sarepta Therapeutics plunged after a report indicated another patient death tied to its experimental gene therapy, and GSK's blood cancer drug dosage was voted against by the FDA advisory committee. Broader market sentiment, including concerns about rising costs and inadequate pricing for 2025 plans among health insurers, also contributed to the downward pressure on healthcare equities. Fortrea is down 68.9% since the beginning of the year, and at $5.80 per share, it is trading 79.2% below its 52-week high of $27.88 from July 2024. Investors who bought $1,000 worth of Fortrea's shares at the IPO in June 2023 would now be looking at an investment worth $192.69. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
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a day ago
- Business
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IQVIA Leads S&P 500 Gainers on Better-Than-Expected Earnings
IQVIA Holdings (IQV) stock surged on Tuesday after the clinical research and analytics company's second-quarter results topped estimates. Shares jumped 18% to lead gainers on the S&P 500 after North Carolina-based IQVIA said it earned an adjusted $2.81 per share in the latest period, while revenue rose 5% from the same time a year ago to $4.02 billion, each above the analyst consensus compiled by Visible Alpha. However, IQVIA narrowed its full-year forecasts, projecting revenue of $16.1 billion to $16.3 billion, compared with the previous range of $16 billion to $16.4 billion, while adjusted EPS is now expected to come in between $11.75 and $12.05, down from $11.70 to $12.10 previously. Sales grew across all three of IQVIA's segments, as CEO Ari Bousbib said the results "underscore the resilience of our global diversified portfolio." Accounting for Tuesday's advance, IQVIA shares were $188.57 in recent trading, still within less than 5% of where it started the year. Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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a day ago
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Why Is Medpace (MEDP) Stock Rocketing Higher Today
What Happened? Shares of clinical research company Medpace Holdings (NASDAQ:MEDP) jumped 49.3% in the morning session after the company reported strong second-quarter financial results and raised its full-year guidance. The company announced its second-quarter results, revealing revenue of $603.3 million, a 14.2% increase from the prior-year period. Earnings per share also grew, coming in at $3.10. Following the strong performance, Medpace raised its full-year 2025 revenue forecast to a range of $2.42 billion to $2.52 billion. It also increased its earnings per share guidance for the year to a range of $13.76 to $14.53. This positive outlook, which surpassed previous forecasts, appeared to fuel significant investor optimism. Medpace, which provides services for all phases of clinical drug development, was scheduled to host a conference call to discuss the results. Is now the time to buy Medpace? Access our full analysis report here, it's free. What Is The Market Telling Us Medpace's shares are quite volatile and have had 17 moves greater than 5% over the last year. But moves this big are rare even for Medpace and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 3 months ago when the stock dropped 11.2% on the news that the company reported first-quarter 2025 earnings with high expectations heading into the quarter, dampening the otherwise decent results. A key concern was the 19% decline in net new bookings. Also, the drop in the book-to-bill ratio to 0.90x further suggested future bookings were slowing, which might explain why investors didn't cheer louder. On a positive note, Medpace blew past analysts' organic revenue and EPS expectations and it lifted its full-year revenue guidance. Zooming out, we think this quarter featured some important positives. However, the market seemed to be hoping for more. Medpace is up 42.1% since the beginning of the year, and at $475.57 per share, has set a new 52-week high. Investors who bought $1,000 worth of Medpace's shares 5 years ago would now be looking at an investment worth $4,315. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Sign in to access your portfolio
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a day ago
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Why IQVIA (IQV) Stock Is Trading Up Today
What Happened? Shares of clinical research company IQVIA (NYSE: IQV) jumped 15.9% in the morning session after the company reported second-quarter financial results that beat Wall Street expectations and raised its full-year profit guidance. The company announced second-quarter revenue of $4.02 billion, which surpassed analyst estimates of $3.96 billion. Adjusted earnings per share (EPS), a key measure of profitability, came in at $2.81, which was also ahead of the consensus forecast of $2.77. The strong performance was driven by solid growth across its business segments, with the Technology & Analytics Solutions division seeing an 8.9% revenue increase. Looking ahead, IQVIA updated its full-year 2025 guidance. It slightly raised its forecast for adjusted EPS to a range of $11.75 to $12.05. The company also reaffirmed its full-year revenue projection, expecting between $16.1 billion and $16.3 billion. The positive results and optimistic outlook appeared to boost investor confidence, signaling robust demand for its clinical research and data analytics services. Is now the time to buy IQVIA? Access our full analysis report here, it's free. What Is The Market Telling Us IQVIA's shares are not very volatile and have only had 8 moves greater than 5% over the last year. Moves this big are rare for IQVIA and indicate this news significantly impacted the market's perception of the business. IQVIA is down 4.6% since the beginning of the year, and at $186.21 per share, it is trading 26% below its 52-week high of $251.55 from August 2024. Investors who bought $1,000 worth of IQVIA's shares 5 years ago would now be looking at an investment worth $1,133. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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2 days ago
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Medpace (NASDAQ:MEDP) Reports Strong Q2, Stock Jumps 46%
Clinical research company Medpace Holdings (NASDAQ:MEDP) reported Q2 CY2025 results exceeding the market's revenue expectations , with sales up 14.2% year on year to $603.3 million. The company's full-year revenue guidance of $2.47 billion at the midpoint came in 13% above analysts' estimates. Its GAAP profit of $3.10 per share was 3.5% above analysts' consensus estimates. Is now the time to buy Medpace? Find out in our full research report. Medpace (MEDP) Q2 CY2025 Highlights: Revenue: $603.3 million vs analyst estimates of $542 million (14.2% year-on-year growth, 11.3% beat) EPS (GAAP): $3.10 vs analyst estimates of $3.00 (3.5% beat) Adjusted EBITDA: $130.5 million vs analyst estimates of $117 million (21.6% margin, 11.5% beat) The company lifted its revenue guidance for the full year to $2.47 billion at the midpoint from $2.19 billion, a 12.8% increase EPS (GAAP) guidance for the full year is $14.15 at the midpoint, beating analyst estimates by 11% EBITDA guidance for the full year is $530 million at the midpoint, above analyst estimates of $473.7 million Operating Margin: 20.9%, up from 19.9% in the same quarter last year Free Cash Flow Margin: 23.6%, up from 19.6% in the same quarter last year Organic Revenue rose 14.2% year on year, in line with the same quarter last year Market Capitalization: $8.96 billion Company Overview Founded in 1992 as a scientifically-driven alternative to traditional contract research organizations, Medpace (NASDAQ:MEDP) provides outsourced clinical trial management and research services to help pharmaceutical, biotechnology, and medical device companies develop new treatments. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Luckily, Medpace's sales grew at an impressive 20.4% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Medpace's annualized revenue growth of 15.5% over the last two years is below its five-year trend, but we still think the results suggest healthy demand. Medpace also reports organic revenue, which strips out one-time events like acquisitions and currency fluctuations that don't accurately reflect its fundamentals. Over the last two years, Medpace's organic revenue averaged 15.7% year-on-year growth. Because this number aligns with its normal revenue growth, we can see the company's core operations (not acquisitions and divestitures) drove most of its results. This quarter, Medpace reported year-on-year revenue growth of 14.2%, and its $603.3 million of revenue exceeded Wall Street's estimates by 11.3%. Looking ahead, sell-side analysts expect revenue to decline by 2.4% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and implies its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Operating Margin Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals. Medpace has managed its cost base well over the last five years. It demonstrated solid profitability for a healthcare business, producing an average operating margin of 19.4%. Analyzing the trend in its profitability, Medpace's operating margin rose by 2.8 percentage points over the last five years, as its sales growth gave it operating leverage. The company's two-year trajectory shows its performance was mostly driven by its recent improvements. These data points are very encouraging and shows momentum is on its side. In Q2, Medpace generated an operating margin profit margin of 20.9%, up 1 percentage points year on year. This increase was a welcome development and shows it was more efficient. Earnings Per Share We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Medpace's EPS grew at an astounding 36.7% compounded annual growth rate over the last five years, higher than its 20.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Diving into the nuances of Medpace's earnings can give us a better understanding of its performance. As we mentioned earlier, Medpace's operating margin expanded by 2.8 percentage points over the last five years. On top of that, its share count shrank by 21.9%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth. In Q2, Medpace reported EPS at $3.10, up from $2.75 in the same quarter last year. This print beat analysts' estimates by 3.5%. Over the next 12 months, Wall Street expects Medpace's full-year EPS of $13.45 to shrink by 8.1%. Key Takeaways from Medpace's Q2 Results We were impressed by how significantly Medpace blew past analysts' expectations across all key metrics this quarter. We were also excited it lifted its full-year guidance. Zooming out, we think this was a solid print. The stock traded up 46% to $451 immediately following the results. Indeed, Medpace had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
