Model N Inc Earnings: Here’s Why Investors are Not Happy Now

Model N Inc (NYSE:MODN) 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 down 14.17%.

Model N Inc Earnings Cheat Sheet

Results:

Revenue: Decreased 0% to $27.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Model N Inc reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $-0.02. It beat the average revenue estimate of $26.99 million.

Quoting Management: “We exceeded our guidance on both revenue and profitability for the third quarter of Fiscal 2013,” said Zack Rinat, Founder, Chairman, and Chief Executive Officer at Model N. “Our products are delivering significant value for our customers across the life sciences and technology verticals as we continue to pioneer the Revenue Management market. We are committed to continue investing in our products, sales, and marketing to enable Model N to scale globally and to capitalize on our growing pipeline and large market opportunity.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased to $0.14 in the quarter versus EPS of $-0.01 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.02 and has not changed. For the current year, the average estimate is a loss of $0.09, which is the same with that ninety days ago.

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