It has been about a month since the last earnings report for Medidata Solutions . Shares have added about 2.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Medidata due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Medidata Tops Q3 Earnings Estimates, Gains From Subscriptions
Medidata reported third-quarter 2018 adjusted earnings per share of 42 cents, beating the Zacks Consensus Estimate of 36 cents. Earnings improved 23.5% from the year-ago quarter.
The company reported revenues of $163.4 million, up 17.6% on a year-over-year basis. Revenues beat the Zacks Consensus Estimate of $163 million.
Segment Details
Subscription revenues came in at $137 million, up 16.9% on a year-over-year basis. In fact, the company expects revenues at the segment to accelerate in the latter half of 2018.
Revenues at Professional services grossed $26.4 million, up 21.6% from the prior-year quarter.
Margins
In the third quarter, gross profit came in at $121.2 million, up 12.8% year over year. Though gross margin was an impressive 74.2%, it contracted 310 basis points (bps).
Guidance
For 2018, the company has kept its previously-issued view unchanged.
Non-GAAP operating income is estimated between $146 million and $154 million.
Further, management expects gross margin to be under pressure in 2018 owing to the SHYFT acquisition. However, management expects $5-$6 million contribution from SHYFT this year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Medidata has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Medidata has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Medidata (MDSO) Up 2.3% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Medidata Solutions . Shares have added about 2.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Medidata due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Medidata Tops Q3 Earnings Estimates, Gains From Subscriptions
Medidata reported third-quarter 2018 adjusted earnings per share of 42 cents, beating the Zacks Consensus Estimate of 36 cents. Earnings improved 23.5% from the year-ago quarter.
The company reported revenues of $163.4 million, up 17.6% on a year-over-year basis. Revenues beat the Zacks Consensus Estimate of $163 million.
Segment Details
Subscription revenues came in at $137 million, up 16.9% on a year-over-year basis. In fact, the company expects revenues at the segment to accelerate in the latter half of 2018.
Revenues at Professional services grossed $26.4 million, up 21.6% from the prior-year quarter.
Margins
In the third quarter, gross profit came in at $121.2 million, up 12.8% year over year. Though gross margin was an impressive 74.2%, it contracted 310 basis points (bps).
Guidance
For 2018, the company has kept its previously-issued view unchanged.
Non-GAAP operating income is estimated between $146 million and $154 million.
Further, management expects gross margin to be under pressure in 2018 owing to the SHYFT acquisition. However, management expects $5-$6 million contribution from SHYFT this year.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, Medidata has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Medidata has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.