1537 ET - Medpace's better-than-expected earnings and revenue may not last for long, say Jefferies analysts David Windley and Tucker Remmers. Most of Medpace's 2Q revenue gains came from "pass-throughs," or repriced site costs in existing projects instead of new contracts, the analysts say, while revenue was also boosted by an all-time high backlog conversion rate. In 2023, the company similarly posted revenue gains boosted by pass-throughs and investors found out later that real bookings and awards were actually slowing, the analysts say. That lesson plus current volatility in biotech funding and increasing competition suggests that Medpace's success may only be short-term. (nicholas.miller@wsj.com)
(END) Dow Jones Newswires
July 22, 2025 15:37 ET (19:37 GMT)
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