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What to Expect Ahead of Simulations Plus (SLP) Q1 Earnings?
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Simulations Plus, Inc. (SLP - Free Report) is slated to release first-quarter fiscal 2022 results on Jan 6.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $11.17 million, suggesting growth of 4.4% from the year-ago quarter’s reported figure.
The consensus for fiscal first-quarter earnings has been steady in the past 30 days at 11 cents per share, indicating a deterioration of 8.3% on a year-over-year basis.
Shares of Simulation Plus have declined 37% in the past year compared with the industry's return of 41%.
Simulations Plus’ diversified product portfolio, including solutions like MembranePlus, DDDPlus and PKPlus, is likely to have positively impacted the top line in the fiscal first quarter.
Momentum in Simulations Plus’ software business is likely to have acted as a tailwind. Within the software business, the company is witnessing strong demand for GastroPlus and ADMET Predictor solutions. The acquisition of Lixoft is expected to have boosted software business performance in the to-be-reported quarter.
In the last reported quarter, software contributed 55% to the company’s total revenues. Sales of GastroPlus and ADMET Predictor offerings increased 20% and 26% year over year, respectively.
Steady traction witnessed for DILIsym and other software simulation offerings, including RENAsym, MedChem Designer, NAFLDsym, Monolix Suite from Lixoft and IPFsym, combined with advanced analytics functionalities is anticipated to have positively impacted the company’s performance in the quarter under review.
Strong adoption of the company’s modeling and simulations workflow platform for drug development across pharma and biotech industries might have aided Simulations Plus’ performance.
A favorable mix of higher-margin software business is expected to have benefitted margin performance in the to-be-reported quarter.
The rapidly-evolving coronavirus situation stemming from the emergence of the Omicron variant across several parts of the world is likely to have affected renewals. Increasing operating expenses, including higher research and development costs, might have kept margin expansion under check in the to-be-reported quarter.
What the Zacks Model Unveils
According to the Zacks model, 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. But that’s not the case here.
Simulations Plus has an Earnings ESP of 0.00 % and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies, which have the right combination of elements to post an earnings beat:
Acuity Brands is set to report first-quarter fiscal 2022 results on Jan 7. The Zacks Consensus Estimate for earnings is pegged at $2.37 per share, suggesting an increase of 16.8% from the prior-year quarter’s reported figure.
Shares of Acuity Brands have rallied 76.1% in the past year compared with the Zacks Building Products- Lighting industry’s rise of 53.4%.
Constellation Brands (STZ - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 3 at present.
Constellation Brands is scheduled to release third-quarter fiscal 2022 results on Jan 6. The Zacks Consensus Estimate for earnings is pegged at $2.82 per share, suggesting a decline of 8.7% from the prior-year quarter’s levels.
Shares of Constellation Brands have increased 15.8% in the past year compared with the Zacks Beverages-Alcoholic industry’s rise of 6.1%.
Tilray, Inc (TLRY - Free Report) has an Earnings ESP of +55.56% and a Zacks Rank of 3.
Tilray is scheduled to release second-quarter fiscal 2022 results on Jan 10. The Zacks Consensus Estimate for loss is pegged at 9 cents per share.
Shares of Tilray have declined 21.9% in the past year compared with the Zacks Medical Drugs industry’s decline of 18.3%.
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What to Expect Ahead of Simulations Plus (SLP) Q1 Earnings?
Simulations Plus, Inc. (SLP - Free Report) is slated to release first-quarter fiscal 2022 results on Jan 6.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $11.17 million, suggesting growth of 4.4% from the year-ago quarter’s reported figure.
The consensus for fiscal first-quarter earnings has been steady in the past 30 days at 11 cents per share, indicating a deterioration of 8.3% on a year-over-year basis.
Shares of Simulation Plus have declined 37% in the past year compared with the industry's return of 41%.
Simulations Plus, Inc. Price and EPS Surprise
Simulations Plus, Inc. price-eps-surprise | Simulations Plus, Inc. Quote
Factors Likely to Have Influenced Q1 Results
Simulations Plus’ diversified product portfolio, including solutions like MembranePlus, DDDPlus and PKPlus, is likely to have positively impacted the top line in the fiscal first quarter.
Momentum in Simulations Plus’ software business is likely to have acted as a tailwind. Within the software business, the company is witnessing strong demand for GastroPlus and ADMET Predictor solutions. The acquisition of Lixoft is expected to have boosted software business performance in the to-be-reported quarter.
In the last reported quarter, software contributed 55% to the company’s total revenues. Sales of GastroPlus and ADMET Predictor offerings increased 20% and 26% year over year, respectively.
Steady traction witnessed for DILIsym and other software simulation offerings, including RENAsym, MedChem Designer, NAFLDsym, Monolix Suite from Lixoft and IPFsym, combined with advanced analytics functionalities is anticipated to have positively impacted the company’s performance in the quarter under review.
Strong adoption of the company’s modeling and simulations workflow platform for drug development across pharma and biotech industries might have aided Simulations Plus’ performance.
A favorable mix of higher-margin software business is expected to have benefitted margin performance in the to-be-reported quarter.
The rapidly-evolving coronavirus situation stemming from the emergence of the Omicron variant across several parts of the world is likely to have affected renewals. Increasing operating expenses, including higher research and development costs, might have kept margin expansion under check in the to-be-reported quarter.
What the Zacks Model Unveils
According to the Zacks model, 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. But that’s not the case here.
Simulations Plus has an Earnings ESP of 0.00 % and a Zacks Rank #3 (Hold). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies, which have the right combination of elements to post an earnings beat:
Acuity Brands (AYI - Free Report) has an Earnings ESP of +3.52% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Acuity Brands is set to report first-quarter fiscal 2022 results on Jan 7. The Zacks Consensus Estimate for earnings is pegged at $2.37 per share, suggesting an increase of 16.8% from the prior-year quarter’s reported figure.
Shares of Acuity Brands have rallied 76.1% in the past year compared with the Zacks Building Products- Lighting industry’s rise of 53.4%.
Constellation Brands (STZ - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank of 3 at present.
Constellation Brands is scheduled to release third-quarter fiscal 2022 results on Jan 6. The Zacks Consensus Estimate for earnings is pegged at $2.82 per share, suggesting a decline of 8.7% from the prior-year quarter’s levels.
Shares of Constellation Brands have increased 15.8% in the past year compared with the Zacks Beverages-Alcoholic industry’s rise of 6.1%.
Tilray, Inc (TLRY - Free Report) has an Earnings ESP of +55.56% and a Zacks Rank of 3.
Tilray is scheduled to release second-quarter fiscal 2022 results on Jan 10. The Zacks Consensus Estimate for loss is pegged at 9 cents per share.
Shares of Tilray have declined 21.9% in the past year compared with the Zacks Medical Drugs industry’s decline of 18.3%.