We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Simulations Plus (SLP) Q2 Earnings & Revenues Beat Estimates
Read MoreHide Full Article
Simulations Plus (SLP - Free Report) reported second-quarter fiscal 2024 earnings of 20 cents per share, unchanged on a year-over-year basis. The figure topped the Zacks Consensus Estimate by 11.1%.
The top line increased 16% year over year to $18.3 million driven by higher software revenues in the Clinical Pharmacology & Pharmacometrics (CPP) and Cheminformatics business units. The top line beat the Zacks Consensus Estimate by 7.2%.
Following the results, shares of SLP are up 9.1% in the premarket trading on Apr 4.
Simulations Plus, Inc. Price, Consensus and EPS Surprise
Revenues from Software (63% of total quarterly revenues) increased 11% year over year to $11.6 million.
Sales of MonolixSuite were up 38%. GastroPlus and ADMET Predictor offerings sales saw an increase of 2% and 14% year over year, respectively.
The renewal rate for commercial customers came in at 94% (based upon fees) and 85% (based on accounts) compared with 94% and 80% in the prior quarter, respectively.
Services’ revenues (37%) improved 27% to $6.7 million. The segment’s top line gained from higher revenues from Quantitative Systems Pharmacology (QSP) and Physiologically Based Pharmacokinetics (PBPK) business units.
Sales of PBPK unit were up 39%. QSP and CPP sales saw an increase of 78% and 10% year over year, respectively. QSP unit is gaining from increasing immunology and cancer model projects.
Services’ backlog was $18 million at the end of the reported quarter, up 16.9% year over year.
Operating Details
The gross margin in the quarter under review was 72% compared with 83% in the prior-year quarter. The Software segment’s gross margin came in at 88% compared with 92% in the prior-year quarter. Services’ gross margin was 44% compared with 66% reported in the year-earlier quarter.
Total operating expenses, as a percentage of revenues, were 48% compared with 58% a year ago.
The operating income margin was 24% compared with 26% a year ago. Adjusted EBITDA margin came in at 39%, unchanged from the prior-year quarter.
Balance Sheet
As of Feb 29, 2023, cash and short-term investments were $108.5 million compared with $113.9 million as of Nov 30, 2023.
The company declared a cash dividend of 6 cents per share, payable on May 6 to stockholders as of Apr 29.
Outlook Reiterated
For fiscal 2024, Simulations Plus continues to expect revenues to be between $66 million and $69 million. This suggests an increase of 10-15% compared with fiscal 2023 revenues.
The company projects Software and Services to consist 55-60% and 40-45% of revenues, respectively. SLP estimates earnings per share to increase in the band of 35-39% from the year-ago levels and to be between 66 cents and 68 cents.
Currently, Simulations Plus carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for SNPS’ fiscal 2024 EPS is pegged at $13.36. The long-term earnings growth rate is 17.5%. SNPS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 4.1%. Shares of SNPS have soared 50.5% in the past year.
The Zacks Consensus Estimate for IRDM’s 2024 EPS has increased 148.3% in the past 60 days to 72 cents. Iridium’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed twice. The average earnings surprise is 91.7%.
The Zacks Consensus Estimate for Microsoft’s fiscal 2024 EPS is pegged at $11.63, indicating growth of 18.6% from the year-ago levels. MSFT’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 8.8%. The long-term earnings growth rate is 16.2%. Shares of MSFT have rallied 46.7% in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Simulations Plus (SLP) Q2 Earnings & Revenues Beat Estimates
Simulations Plus (SLP - Free Report) reported second-quarter fiscal 2024 earnings of 20 cents per share, unchanged on a year-over-year basis. The figure topped the Zacks Consensus Estimate by 11.1%.
The top line increased 16% year over year to $18.3 million driven by higher software revenues in the Clinical Pharmacology & Pharmacometrics (CPP) and Cheminformatics business units. The top line beat the Zacks Consensus Estimate by 7.2%.
Following the results, shares of SLP are up 9.1% in the premarket trading on Apr 4.
Simulations Plus, Inc. Price, Consensus and EPS Surprise
Simulations Plus, Inc. price-consensus-eps-surprise-chart | Simulations Plus, Inc. Quote
Quarter in Details
Revenues from Software (63% of total quarterly revenues) increased 11% year over year to $11.6 million.
Sales of MonolixSuite were up 38%. GastroPlus and ADMET Predictor offerings sales saw an increase of 2% and 14% year over year, respectively.
The renewal rate for commercial customers came in at 94% (based upon fees) and 85% (based on accounts) compared with 94% and 80% in the prior quarter, respectively.
Services’ revenues (37%) improved 27% to $6.7 million. The segment’s top line gained from higher revenues from Quantitative Systems Pharmacology (QSP) and Physiologically Based Pharmacokinetics (PBPK) business units.
Sales of PBPK unit were up 39%. QSP and CPP sales saw an increase of 78% and 10% year over year, respectively. QSP unit is gaining from increasing immunology and cancer model projects.
Services’ backlog was $18 million at the end of the reported quarter, up 16.9% year over year.
Operating Details
The gross margin in the quarter under review was 72% compared with 83% in the prior-year quarter. The Software segment’s gross margin came in at 88% compared with 92% in the prior-year quarter. Services’ gross margin was 44% compared with 66% reported in the year-earlier quarter.
Total operating expenses, as a percentage of revenues, were 48% compared with 58% a year ago.
The operating income margin was 24% compared with 26% a year ago. Adjusted EBITDA margin came in at 39%, unchanged from the prior-year quarter.
Balance Sheet
As of Feb 29, 2023, cash and short-term investments were $108.5 million compared with $113.9 million as of Nov 30, 2023.
The company declared a cash dividend of 6 cents per share, payable on May 6 to stockholders as of Apr 29.
Outlook Reiterated
For fiscal 2024, Simulations Plus continues to expect revenues to be between $66 million and $69 million. This suggests an increase of 10-15% compared with fiscal 2023 revenues.
The company projects Software and Services to consist 55-60% and 40-45% of revenues, respectively. SLP estimates earnings per share to increase in the band of 35-39% from the year-ago levels and to be between 66 cents and 68 cents.
Currently, Simulations Plus carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Synopsys (SNPS - Free Report) , Iridium Communications (IRDM - Free Report) and Microsoft (MSFT - Free Report) . While SNPS and IRDM sport a Zacks Rank #1 (Strong Buy) each, MSFT carries a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for SNPS’ fiscal 2024 EPS is pegged at $13.36. The long-term earnings growth rate is 17.5%. SNPS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 4.1%. Shares of SNPS have soared 50.5% in the past year.
The Zacks Consensus Estimate for IRDM’s 2024 EPS has increased 148.3% in the past 60 days to 72 cents. Iridium’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed twice. The average earnings surprise is 91.7%.
The Zacks Consensus Estimate for Microsoft’s fiscal 2024 EPS is pegged at $11.63, indicating growth of 18.6% from the year-ago levels. MSFT’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 8.8%. The long-term earnings growth rate is 16.2%. Shares of MSFT have rallied 46.7% in the past year.