Model N (NYSE:MODN) Updates Q4 2019 Earnings Guidance

Model N (NYSE:MODN) issued an update on its fourth quarter 2019 earnings guidance on Tuesday morning. The company provided earnings per share guidance of $0.06-0.10 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $0.07. The company issued revenue guidance of $35.5-35.9 million, compared to the consensus revenue estimate of $35.42 million.Model N also updated its FY 2019 guidance to $0.16-0.20 EPS.

MODN stock traded down $0.15 during trading hours on Friday, reaching $26.37. 522,600 shares of the stock were exchanged, compared to its average volume of 205,124. The firm’s 50-day simple moving average is $20.94. The company has a market cap of $708.12 million, a P/E ratio of -36.12 and a beta of 0.56. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.35 and a current ratio of 1.35. Model N has a 12 month low of $12.60 and a 12 month high of $26.84.

Model N (NYSE:MODN) last released its earnings results on Tuesday, August 6th. The software maker reported ($0.05) earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($0.14) by $0.09. The firm had revenue of $34.71 million during the quarter, compared to analysts’ expectations of $34.16 million. Model N had a negative return on equity of 27.89% and a negative net margin of 12.21%. The company’s revenue was down 12.4% on a year-over-year basis. During the same quarter in the prior year, the company earned ($0.07) EPS. Equities analysts expect that Model N will post -0.45 earnings per share for the current year.

A number of equities analysts have issued reports on MODN shares. Chardan Capital reiterated a buy rating and set a $23.00 target price on shares of Model N in a report on Monday, May 20th. National Securities reiterated a buy rating on shares of Model N in a report on Wednesday, May 8th. Needham & Company LLC upgraded Model N from a hold rating to a buy rating and set a $26.00 target price for the company in a report on Wednesday. JMP Securities increased their target price on Model N to $29.00 and gave the stock a positive rating in a report on Wednesday. They noted that the move was a valuation call. Finally, JPMorgan Chase & Co. raised their price objective on Model N from $21.00 to $25.00 and gave the company a neutral rating in a report on Wednesday. Two equities research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company. Model N currently has a consensus rating of Buy and a consensus price target of $23.13.

In related news, CEO Jason Blessing sold 12,022 shares of the firm’s stock in a transaction dated Thursday, May 16th. The shares were sold at an average price of $18.89, for a total value of $227,095.58. Following the completion of the sale, the chief executive officer now directly owns 362,184 shares in the company, valued at approximately $6,841,655.76. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Mark Albert Anderson sold 4,000 shares of the firm’s stock in a transaction dated Monday, May 13th. The shares were sold at an average price of $18.59, for a total transaction of $74,360.00. Following the completion of the sale, the senior vice president now owns 130,934 shares of the company’s stock, valued at $2,434,063.06. The disclosure for this sale can be found here. Insiders sold a total of 24,833 shares of company stock valued at $467,895 in the last 90 days. 1.20% of the stock is owned by corporate insiders.

About Model N

Model N, Inc provides revenue management cloud solutions for the life sciences and technology companies. The company's cloud-based revenue management solutions include Revenue Cloud for Pharma, Revenue Cloud for Med Tech, and Revenue Cloud for Semiconductors and High Tech Manufacturing. It develops software applications, such as managed care and government pricing for life science companies; and channel incentives for technology companies.

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Earnings History and Estimates for Model N (NYSE:MODN)

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