Medidata Solutions Earnings: Here’s Why Investors are Excited Now

Medidata Solutions, Inc. (NASDAQ:MDSO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 22.27%.

Medidata Solutions, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 56.52% to $0.36 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Rose 27.21% to $68.07 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Medidata Solutions, Inc. reported adjusted EPS income of $0.36 per share. By that measure, the company beat the mean analyst estimate of $0.29. It beat the average revenue estimate of $66.67 million.

Quoting Management: “Our great execution and the growing market opportunity for the Medidata Clinical Cloud are evident in our record second quarter financial results, growing product penetration and positive outlook for the remainder of the year,” said Tarek Sherif, Medidata’s chairman and chief executive officer. “The strength of our vertical SaaS model comes from the combination of our modern cloud technology and deep domain expertise. Coupled with the industry’s richest repository of clinical trial data, Medidata’s platform is transforming clinical research.”

Key Stats (on next page)…

Revenue increased 7.6% from $63.26 million in the previous quarter. EPS increased 2.86% from $0.35 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.30 to a profit $0.31. For the current year, the average estimate has moved up from a profit of $1.12 to a profit of $1.30 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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