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.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
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.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
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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The article Medidata Solutions Beats Estimates But Has a Big Earnings Drop originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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