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Simulations Plus (SLP) to Post Q1 Earnings: What's in Store?

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Simulations Plus, Inc. (SLP - Free Report) is scheduled to release first-quarter fiscal 2021 results on Jan 11.

The Zacks Consensus Estimate for fiscal first-quarter revenues stands at $10.56 million, suggesting growth of 12.3% from the year-ago reported figure.

The consensus for fiscal first-quarter earnings has been steady over the past seven days at 11 cents per share, in line with the year-ago reported figure.

Factors to Note

Simulations Plus’ fiscal first-quarter performance is anticipated to have benefited from strength in its diversified product portfolio, which includes GastroPlus, DDDPlus, MembranePlus and PKPlus.

Moreover, growing clout of DILIsym, ADMET Predictor, and other software simulation offerings, including MedChem Designer, KIWI, NAFLDsym, RENAsym, Monolix Suite and IPFsym, integrated with advanced analytics capabilities is likely to get reflected in the to-be-reported quarter’s top line.
 

Simulations Plus, Inc. Price and EPS Surprise

Simulations Plus, Inc. Price and EPS Surprise

Simulations Plus, Inc. price-eps-surprise | Simulations Plus, Inc. Quote

Further, solid uptick in modeling and simulations workflow platform for drug development across pharma and biotech industries, in the wake of coronavirus-led demand for vaccine development, might have aided Simulations Plus’ performance in the quarter under review.

However, the company has been witnessing difficulty in winning new business due to disruption caused by the coronavirus pandemic. Notably, software renewal rate of 88% in fourth-quarter fiscal 2020, was lower on account of seasonality and coronavirus crisis induced business uncertainty.

Also, broad-based economic weakness led by resurgence in coronavirus cases across Europe, where the company is strengthening its position (Lixoft buyout deserves a special mention), is likely to have impeded renewals and top-line growth in the quarter to be reported.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Simulations Plus this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Simulations Plus has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell), which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks that Warrant a Look

Here are a few companies, which have the right combination of elements to post an earnings beat:

Amphenol Corporation (APH - Free Report) has an Earnings ESP of +0.62% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Avnet, Inc. (AVT - Free Report) has an Earnings ESP of +2.63% and a Zacks Rank #2.

Maxim Integrated Products, Inc. , currently a Zacks #2 Ranked stock, has an Earnings ESP of +1.83%.

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