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Simulations Plus (SLP) to Report Q2 Earnings: What's in Store?
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Simulations Plus, Inc (SLP - Free Report) is slated to release second-quarter fiscal 2024 results on Apr 3.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $17.1 million, which suggests growth of 8.4% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 18 cents per share, indicating a decline of 10% from the prior-year levels.
The company reported first-quarter fiscal 2024 earnings of 10 cents, up 66.7% on a year-over-year basis. The top line increased 21% year over year to $14.5 million driven by higher software revenues from Quantitative Systems Pharmacology oncology modeling platform and Physiologically Based Pharmacokinetics (PBPK) business.
Simulations Plus’ performance in the fiscal second quarter is likely to have benefited from solid momentum in the software business unit owing to healthy renewal activity and strong pipeline. Momentum in PBPK business also bodes well along with frequent strategic collaborations for new AI/ML drug discovery.
SLP’s implementation of cross-selling strategies has seen success with a growing client base using multiple platforms. Management highlighted that its software revenues usually comprised 80% revenues from renewal activity and 10% each from upsell and new logos. In the last reported quarter, the company booked nine commercial client upsells in the PBPK unit while for Clinical Pharmacology and Pharmacometrics or CPP business unit, it booked 10 client upsells.
Service revenues are likely to have gained from rising backlog owing to sales and marketing investments and the buyout of Immunetrics. The company also continues to expand its global footprint by increasing its presence in Europe, Asia and Latin America.
However, relatively soft client funding and budget cycles, especially for biotech and pharmaceutical customers remain concerning amid a volatile macroeconomic environment. Higher costs on product enhancements and research and development are likely to have exerted pressure on margin expansion in the quarter under review.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for SLP 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 #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 you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
The Zacks Consensus Estimate for CBSH’s to-be-reported quarter’s earnings and revenues is pegged at 79 cents per share and $384.4 million, respectively.
Delta Air Lines, Inc. (DAL - Free Report) has an Earnings ESP of +3.32% and a Zacks Rank #3. DAL is scheduled to report first-quarter 2024 earnings on Apr 10.
The Zacks Consensus Estimate for DAL’s to-be-reported quarter’s earnings and revenues is pegged at 33 cents per share and $12.88 billion, respectively.
JPMorgan Chase & Co. (JPM - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #3. JPM is set to post first-quarter 2024 results on Apr 12.
The Zacks Consensus Estimate for JPM’s to-be-reported quarter’s earnings and revenues is pegged at $4.21 per share and $40.8 billion, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Simulations Plus (SLP) to Report Q2 Earnings: What's in Store?
Simulations Plus, Inc (SLP - Free Report) is slated to release second-quarter fiscal 2024 results on Apr 3.
The Zacks Consensus Estimate for fiscal second-quarter revenues is pegged at $17.1 million, which suggests growth of 8.4% from the year-ago quarter’s reported figure.
The consensus mark for earnings is pegged at 18 cents per share, indicating a decline of 10% from the prior-year levels.
The company reported first-quarter fiscal 2024 earnings of 10 cents, up 66.7% on a year-over-year basis. The top line increased 21% year over year to $14.5 million driven by higher software revenues from Quantitative Systems Pharmacology oncology modeling platform and Physiologically Based Pharmacokinetics (PBPK) business.
Simulations Plus, Inc. Price and EPS Surprise
Simulations Plus, Inc. price-eps-surprise | Simulations Plus, Inc. Quote
Factors to Note
Simulations Plus’ performance in the fiscal second quarter is likely to have benefited from solid momentum in the software business unit owing to healthy renewal activity and strong pipeline. Momentum in PBPK business also bodes well along with frequent strategic collaborations for new AI/ML drug discovery.
SLP’s implementation of cross-selling strategies has seen success with a growing client base using multiple platforms. Management highlighted that its software revenues usually comprised 80% revenues from renewal activity and 10% each from upsell and new logos. In the last reported quarter, the company booked nine commercial client upsells in the PBPK unit while for Clinical Pharmacology and Pharmacometrics or CPP business unit, it booked 10 client upsells.
Service revenues are likely to have gained from rising backlog owing to sales and marketing investments and the buyout of Immunetrics. The company also continues to expand its global footprint by increasing its presence in Europe, Asia and Latin America.
However, relatively soft client funding and budget cycles, especially for biotech and pharmaceutical customers remain concerning amid a volatile macroeconomic environment. Higher costs on product enhancements and research and development are likely to have exerted pressure on margin expansion in the quarter under review.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for SLP 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 #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 you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.
Commerce Bancshares, Inc. (CBSH - Free Report) has an Earnings ESP of +5.88% and carries a Zacks Rank #2. CBSH is slated to release first-quarter 2024 numbers on Apr 16. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CBSH’s to-be-reported quarter’s earnings and revenues is pegged at 79 cents per share and $384.4 million, respectively.
Delta Air Lines, Inc. (DAL - Free Report) has an Earnings ESP of +3.32% and a Zacks Rank #3. DAL is scheduled to report first-quarter 2024 earnings on Apr 10.
The Zacks Consensus Estimate for DAL’s to-be-reported quarter’s earnings and revenues is pegged at 33 cents per share and $12.88 billion, respectively.
JPMorgan Chase & Co. (JPM - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #3. JPM is set to post first-quarter 2024 results on Apr 12.
The Zacks Consensus Estimate for JPM’s to-be-reported quarter’s earnings and revenues is pegged at $4.21 per share and $40.8 billion, respectively.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.