Benzinga | Feb 12, 2021 10:05AM EST

A Preview Of Medpace Hldgs's Earnings

Medpace Hldgs (NASDAQ:MEDP) releases its next round of earnings this Monday, February 15. Here is Benzinga's essential guide to Medpace Hldgs's Q4 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Medpace Hldgs EPS will likely be near $1.24 while revenue will be around $245.96 million, according to analysts. In the same quarter last year, Medpace Hldgs reported earnings per share of $0.85 on revenue of $229.89 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be up 45.88%. Revenue would be up 6.99% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate 1.07 0.40 0.75 0.75EPS Actual 1.09 0.64 0.76 0.85Revenue Estimate 223.56 M 174.97 M 226.32 M 221.73 MRevenue Actual 230.37 M 205.00 M 230.88 M 229.89 M

Stock Performance

Shares of Medpace Hldgs were trading at $167.35 as of February 11. Over the last 52-week period, shares are up 69.61%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Medpace Hldgs is scheduled to hold the call at 09:00:00 ET and can be accessed here.