Medidata Solutions Beats Estimates But Has a Big Earnings Drop
Medidata Solutions (NAS: MDSO) reported earnings on Feb. 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Medidata Solutions met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share contracted significantly.
Margins shrank across the board.
Medidata Solutions chalked up revenue of $58.6 million. The six analysts polled by S&P Capital IQ expected net sales of $59.1 million on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $47.2 million.
EPS came in at $0.25. The four earnings estimates compiled by S&P Capital IQ averaged $0.20 per share. GAAP EPS of $0.25 for Q4 were 67% lower than the prior-year quarter's $0.76 per share.
For the quarter, gross margin was 72.1%, 170 basis points worse than the prior-year quarter. Operating margin was 15.8%, 70 basis points worse than the prior-year quarter. Net margin was 11.2%, much worse than the prior-year quarter.
Next quarter's average estimate for revenue is $61.6 million. On the bottom line, the average EPS estimate is $0.17.
Next year's average estimate for revenue is $261.3 million. The average EPS estimate is $0.81.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 50 members out of 54 rating the stock outperform, and four members rating it underperform. Among 15 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Medidata Solutions a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Medidata Solutions is outperform, with an average price target of $49.50.
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