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Simulations Plus (SLP) to Report Q1 Earnings: What's in Store?
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Simulations Plus (SLP - Free Report) is slated to release first-quarter fiscal 2024 results on Jan 3, 2024.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $13.7 million, which suggests growth of 15.1% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 11 cents per share, indicating a year-over-year increase of 83.3%.
The company reported fourth-quarter fiscal 2023 earnings of 18 cents per share compared with 6 cents in the year-ago quarter. Revenues of $15.6 million increased 33% year over year, driven by higher revenues in the Software and Services business segments.
The company’s performance in the fiscal first quarter is likely to have benefited from solid momentum in the software business unit owing to renewal harmonization initiatives that simplify and align contract renewals. Frequent strategic collaborations for new AI/ML drug discovery bode well.
SLP’s implementation of cross-selling strategies has seen success with a growing client base using multiple platforms. In the last reported quarter, it added 10 new customers and 11 upsells for the GastroPlus offering. For ADMET Predictor, it added six new customers with five upsells. For Monolix, it added seven new customers with five upsells.
Service revenues are likely to have benefited from the rising backlog owing to the sales and marketing investments and the addition of ImmuMetrix. The company also continues to expand its global footprint by increasing its presence in Europe, Asia and Latin America, and penetrating smaller biotech firms with its software solutions like PBPK and PKPD services.
However, the software revenue renewal rate is likely to have been affected due to a slowdown from small biotech customers that have been impacted by funding scarcity. Higher costs on product enhancements, acquisitions, and research and development are likely to have exerted pressure on margin expansion in the quarter under review.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks that have the right combination of elements to post an earnings beat this time around.
The Zacks Consensus Estimate for Constellation Brands’ to-be-reported quarter’s earnings is pegged at $3.03 per share. The company’s earnings have delivered an average surprise of 4.3% in the trailing four quarters. Shares of STZ have gained 4.5% in the past year.
Franklin Convey (FC - Free Report) has an Earnings ESP of +17.33% and currently carries a Zacks Rank #3. FC is scheduled to report first-quarter fiscal 2024 earnings on Jan 4.
The Zacks Consensus Estimate for Franklin Convey’s to-be-reported quarter’s earnings is pegged at 19 cents per share. The company’s earnings have delivered an average surprise of 23.7% in the trailing four quarters. Shares of FC have lost 8.2% in the past year.
AZZ Inc (AZZ - Free Report) has an Earnings ESP of +3.03% and currently carries a Zacks Rank #3. AZZ is scheduled to report third-quarter fiscal 2024 earnings on Jan 9.
The Zacks Consensus Estimate for AZZ’s to-be-reported quarter’s earnings is pegged at 99 cents per share. The company’s earnings have delivered an average surprise of 24.8% in the trailing four quarters. Shares of AZZ have gained 45.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Simulations Plus (SLP) to Report Q1 Earnings: What's in Store?
Simulations Plus (SLP - Free Report) is slated to release first-quarter fiscal 2024 results on Jan 3, 2024.
The Zacks Consensus Estimate for fiscal first-quarter revenues is pegged at $13.7 million, which suggests growth of 15.1% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 11 cents per share, indicating a year-over-year increase of 83.3%.
The company reported fourth-quarter fiscal 2023 earnings of 18 cents per share compared with 6 cents in the year-ago quarter. Revenues of $15.6 million increased 33% year over year, driven by higher revenues in the Software and Services business segments.
Simulations Plus, Inc. Price and EPS Surprise
Simulations Plus, Inc. price-eps-surprise | Simulations Plus, Inc. Quote
Factors to Note
The company’s performance in the fiscal first quarter is likely to have benefited from solid momentum in the software business unit owing to renewal harmonization initiatives that simplify and align contract renewals. Frequent strategic collaborations for new AI/ML drug discovery bode well.
SLP’s implementation of cross-selling strategies has seen success with a growing client base using multiple platforms. In the last reported quarter, it added 10 new customers and 11 upsells for the GastroPlus offering. For ADMET Predictor, it added six new customers with five upsells. For Monolix, it added seven new customers with five upsells.
Service revenues are likely to have benefited from the rising backlog owing to the sales and marketing investments and the addition of ImmuMetrix. The company also continues to expand its global footprint by increasing its presence in Europe, Asia and Latin America, and penetrating smaller biotech firms with its software solutions like PBPK and PKPD services.
However, the software revenue renewal rate is likely to have been affected due to a slowdown from small biotech customers that have been impacted by funding scarcity. Higher costs on product enhancements, acquisitions, and research and development are likely to have exerted pressure on margin expansion in the quarter under review.
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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks that have the right combination of elements to post an earnings beat this time around.
Constellation Brands (STZ - Free Report) has an Earnings ESP of +0.64% and currently carries a Zacks Rank #3. ANGO is scheduled to report third-quarter fiscal 2024 earnings on Jan 5. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Constellation Brands’ to-be-reported quarter’s earnings is pegged at $3.03 per share. The company’s earnings have delivered an average surprise of 4.3% in the trailing four quarters. Shares of STZ have gained 4.5% in the past year.
Franklin Convey (FC - Free Report) has an Earnings ESP of +17.33% and currently carries a Zacks Rank #3. FC is scheduled to report first-quarter fiscal 2024 earnings on Jan 4.
The Zacks Consensus Estimate for Franklin Convey’s to-be-reported quarter’s earnings is pegged at 19 cents per share. The company’s earnings have delivered an average surprise of 23.7% in the trailing four quarters. Shares of FC have lost 8.2% in the past year.
AZZ Inc (AZZ - Free Report) has an Earnings ESP of +3.03% and currently carries a Zacks Rank #3. AZZ is scheduled to report third-quarter fiscal 2024 earnings on Jan 9.
The Zacks Consensus Estimate for AZZ’s to-be-reported quarter’s earnings is pegged at 99 cents per share. The company’s earnings have delivered an average surprise of 24.8% in the trailing four quarters. Shares of AZZ have gained 45.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.