Stock on the Move: Medidata Solutions, Inc (MDSO)

Medidata Solutions, Inc. (NASDAQ:MDSO) reported earnings for the three months ended Mar2016 on April 21, 2016. The company earned $0.25 per share on revenue of $104.24M. Analysts had been modeling earning per share of $0.18 with $103.22M in revenue.

First Quarter 2016 Results

Total revenue for the first quarter of 2016 was $104.2 million, an increase of $11.8 million, or 13%, compared with $92.4 million in the first quarter of 2015. Subscription revenue was $90.0 million, an increase of 14% compared with the same period last year.

GAAP operating income for the quarter was $6.6 million, up 92% compared with $3.5 million in the first quarter of 2015. Non-GAAP operating income¹ for the first quarter of 2016 increased to $20.1 million, up 14% compared with $17.7 million a year ago.

GAAP net income for the first quarter of 2016 was $5.8 million, or $0.10 per diluted share, compared with $0.2 million, or $0.00 per diluted share, in the first quarter of 2015. Adjusted non-GAAP net income¹ for the first quarter of 2016 was $14.1 million, or $0.25 per diluted share, up 53% compared with $9.2 million, or $0.17 per diluted share, in the first quarter of 2015. See the non-GAAP reconciliation included in this release for full details of the non-GAAP adjustments.

Cash flow from operations was $12.5 million in the first quarter of 2016, compared with $16.9 million a year ago.

Total cash, cash equivalents and marketable securities were $476.6 million at the end of the first quarter of 2016, an increase of $10.8 million, or 2%, compared with $465.8 million at the end of the first quarter of 2015.

Medidata Solutions, Inc. earnings per share showed an increasing trend of 111.2% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 123%.Analysts project EPS growth over the next 5 years at 17.92%. It has EPS annual decline over the past 5 fiscal years of -13.3% when sales grew 18.7. It reported 12.8% sales growth, and 3624.8% EPS growth in the last quarter.

The stock is trading at $45.94, up 52.02% from 52-week low of $30.22. The stock trades down -25.07% from its peak of $61.31 and 7.31% above the consensus price target of $49.3. Its volume clocked up at 0.55 million shares which is higher than the average volume of 0.38 million shares. Its market capitalization currently stands at $2.42B.