The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Medidata Solutions met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins dropped, net margins shrank.
Medidata Solutions notched revenue of $55.8 million. The seven analysts polled by S&P Capital IQ expected to see revenue of $56.1 million on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $46.3 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 $0.16. The four earnings estimates compiled by S&P Capital IQ anticipated $0.23 per share. GAAP EPS of $0.16 for Q3 were 48% lower than the prior-year quarter's $0.31 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 71.5%, 70 basis points better than the prior-year quarter. Operating margin was 12.2%, 410 basis points worse than the prior-year quarter. Net margin was 7.3%, 890 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $58.3 million. On the bottom line, the average EPS estimate is $0.27.
Next year's average estimate for revenue is $218.3 million. The average EPS estimate is $0.79.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 48 members out of 51 rating the stock outperform, and three members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Medidata Solutions a green thumbs-up, and 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 $39.17.
- Add Medidata Solutions to My Watchlist.