Thank you for your answer. What I would like to point out is your assumption of 15% growth, analysts are expecting EPS of $12.7 rather than $13.7 for FY25, which equates to 6-7% earnings growth. What makes me positive though is that they have regularly raised the outlook over the last few years and exceeded various analyst expectations.
Yep, I see that Yahoo Finance displays even $12.49 for FY25. But for the next 3-5 years CAGR is 15.15 - https://prnt.sc/HAgX9KkuAJY2 Also, I would add that Seeking Alpha shows the same number (often they are different and often SA shows lower numbers) - https://prnt.sc/JxQ9RJBJ175Q
One question on MEDP: you have lowered further growth by 150 basis points to 15%. I'm not so optimistic about the Q4 guidance as it looks like 3-4 quarters in a row of declining net new business. So the backlog is melting away and further growth could be limited, right?
Thanks for your reply and valuable addition regarding MEDP.
> Q4 guidance as it looks like 3-4 quarters in a row of declining net new business
> So the backlog is melting away and further growth could be limited, right?
Based on their latest report, the company still expect to convert approximately $1.62 billion of their backlog into revenue over the next 12 months. But, yes, backlog cancellations in Q3 were above the usual range. Also, business awards decreased.
Actually, the above are reasons (in price) why I lowered their future growth.
thanks for your work!!
👌
Thank you for your answer. What I would like to point out is your assumption of 15% growth, analysts are expecting EPS of $12.7 rather than $13.7 for FY25, which equates to 6-7% earnings growth. What makes me positive though is that they have regularly raised the outlook over the last few years and exceeded various analyst expectations.
Yep, I see that Yahoo Finance displays even $12.49 for FY25. But for the next 3-5 years CAGR is 15.15 - https://prnt.sc/HAgX9KkuAJY2 Also, I would add that Seeking Alpha shows the same number (often they are different and often SA shows lower numbers) - https://prnt.sc/JxQ9RJBJ175Q
In my estimates I use exactly 5-yr expected EPS growth - https://prnt.sc/96D4xjmwDSAE
If there are still any questions, feel free to ask :)
Thank you for the update!
One question on MEDP: you have lowered further growth by 150 basis points to 15%. I'm not so optimistic about the Q4 guidance as it looks like 3-4 quarters in a row of declining net new business. So the backlog is melting away and further growth could be limited, right?
Thanks for your reply and valuable addition regarding MEDP.
> Q4 guidance as it looks like 3-4 quarters in a row of declining net new business
> So the backlog is melting away and further growth could be limited, right?
Based on their latest report, the company still expect to convert approximately $1.62 billion of their backlog into revenue over the next 12 months. But, yes, backlog cancellations in Q3 were above the usual range. Also, business awards decreased.
Actually, the above are reasons (in price) why I lowered their future growth.