Why Medidata Solutions (MDSO) Stock Is Down Today

NEW YORK (TheStreet) -- Medidata Solutions (MDSO) stock is trading lower on Tuesday after the company missed analysts' estimates in its first quarter. 

By midmorning, shares had tanked 21.4% to $41.42. 

The software-as-a-service developer reported net income of 11 cents a share over the three months to March, 5 cents less than analysts surveyed by Thomson Reuters had forecast. 

Revenue of $76.6 million was lower than estimates of $79.5 million. 

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TheStreet Ratings team rates MEDIDATA SOLUTIONS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate MEDIDATA SOLUTIONS INC (MDSO) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk."

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