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Medidata (MDSO) Tops Earnings & Revenue Estimates in Q3
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Medidata Solutions, Inc 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’s tally.
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.
Medidata has a Zacks Rank #3 (Hold).
Segment Details
Subscription revenues came in at $137 million, up 16.9% on a year-over-year basis. In fact, the company expects revenues in the segment to accelerate in the latter half of 2018.
Revenues in the Professional services grossed $26.4 million, up 21.6% from the prior-year quarter’s figure.
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 projectedbetween $146 million and $154 million.
Further, management expects gross margin to become pressed for 2018 owing to the SHYFT acquisition. However, management expects $5-$6 million contribution from SHYFT in 2018.
Wrapping Up
Medidata ended the third quarter of 2018 on a solid note, beating the Zacks Consensus Estimate for both the counts. Medidata’s strong subscription revenues are a positive. Focus on cloud-based services is worth a mention. In fact, the company’s Medidata Cloud has witnessed developments recently. The company is currently banking on the recently acquired SHYFT. The latest collaboration with Novartis is likely to support the commercialization of key therapies in Europe. Furthermore, the company’s flagship RAVE genomics platform is currently much in demand.
On the negative side, Medidata’s declining gross and operating margins raise concern. A string of acquisitions raises significant consolidation risks. The company’s overdependence on third parties may also be a concern over the long haul. The company’s cloud-based platform may lead to complexities, leading to high correctional costs. Stiff competition in the niche space adds to Medidata’s concerns.
Want More From the MedTech Industry?
A few better-ranked stocks in the MedTech space are Inogen, Inc (INGN - Free Report) , Baxter International Inc (BAX - Free Report) and Edwards Lifesciences Corporation (EW - Free Report) .
Inogen is expected to release third-quarter fiscal 2018 results on Nov 6. The Zacks Consensus Estimate is pegged at 52 cents for the quarter’s adjusted EPS and the same for revenues is pegged at $91.1. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Baxter is expected to release third-quarter 2018 results on Oct 31. The Zacks Consensus Estimate for the period’s adjusted EPS is 74 cents and the same for revenues is pegged at $2.79 billion. The stock carries a Zacks Rank #2.
Edwards Lifesciences is slated to release third-quarter 2018 results on Oct 23. The Zacks Consensus Estimate for adjusted EPS is $1.02for the to-be-reported quarter and the same for the top line is pegged at $925 million. The stock carries a Zacks Rank #2.
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Medidata (MDSO) Tops Earnings & Revenue Estimates in Q3
Medidata Solutions, Inc 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’s tally.
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.
Medidata has a Zacks Rank #3 (Hold).
Segment Details
Subscription revenues came in at $137 million, up 16.9% on a year-over-year basis. In fact, the company expects revenues in the segment to accelerate in the latter half of 2018.
Revenues in the Professional services grossed $26.4 million, up 21.6% from the prior-year quarter’s figure.
Medidata Solutions, Inc. Price and Consensus
Medidata Solutions, Inc. Price and Consensus | Medidata Solutions, Inc. Quote
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 projectedbetween $146 million and $154 million.
Further, management expects gross margin to become pressed for 2018 owing to the SHYFT acquisition. However, management expects $5-$6 million contribution from SHYFT in 2018.
Wrapping Up
Medidata ended the third quarter of 2018 on a solid note, beating the Zacks Consensus Estimate for both the counts. Medidata’s strong subscription revenues are a positive. Focus on cloud-based services is worth a mention. In fact, the company’s Medidata Cloud has witnessed developments recently. The company is currently banking on the recently acquired SHYFT. The latest collaboration with Novartis is likely to support the commercialization of key therapies in Europe. Furthermore, the company’s flagship RAVE genomics platform is currently much in demand.
On the negative side, Medidata’s declining gross and operating margins raise concern. A string of acquisitions raises significant consolidation risks. The company’s overdependence on third parties may also be a concern over the long haul. The company’s cloud-based platform may lead to complexities, leading to high correctional costs. Stiff competition in the niche space adds to Medidata’s concerns.
Want More From the MedTech Industry?
A few better-ranked stocks in the MedTech space are Inogen, Inc (INGN - Free Report) , Baxter International Inc (BAX - Free Report) and Edwards Lifesciences Corporation (EW - Free Report) .
Inogen is expected to release third-quarter fiscal 2018 results on Nov 6. The Zacks Consensus Estimate is pegged at 52 cents for the quarter’s adjusted EPS and the same for revenues is pegged at $91.1. The stock flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Baxter is expected to release third-quarter 2018 results on Oct 31. The Zacks Consensus Estimate for the period’s adjusted EPS is 74 cents and the same for revenues is pegged at $2.79 billion. The stock carries a Zacks Rank #2.
Edwards Lifesciences is slated to release third-quarter 2018 results on Oct 23. The Zacks Consensus Estimate for adjusted EPS is $1.02for the to-be-reported quarter and the same for the top line is pegged at $925 million. The stock carries a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>