Model N Earnings: Here’s Why Investors are Happy Now

Model N (NYSE:MODN) had a loss 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 2.87%.

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Model N Earnings Cheat Sheet

Revenue: Was the same at $24.6 million as the year-earlier quarter.

Actual vs. Wall St. Expectations: Model N reported adjusted EPS loss of $0.01 per share. By that measure, the company beat the mean analyst estimate of $-0.10. It beat the average revenue estimate of $23.84 million.

Quoting Management: “We are pleased with our second quarter results, which exceeded our expectations on both revenue and profitability,” said Zack Rinat, Founder, Chairman, and Chief Executive Officer at Model N. “We are still in the early stages of a major new market opportunity as companies adopt modern software solutions to address their Revenue Management challenges, replacing outdated custom solutions and manual business processes along the way. Model N has emerged as the market leader as a result of our comprehensive Revenue Management platform, vertical focus and demonstrated history of delivering business value.”

Key Stats (on next page)…

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from $0 to a loss $0.04. For the current year, the average estimate has moved down from $0 to a loss of $0.19 over the last ninety days.

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