What to Expect from Simulations Plus's Earnings

Simulations Plus SLP will release its quarterly earnings report on Wednesday, 2024-10-23. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Simulations Plus to report an earnings per share (EPS) of $0.03.

Simulations Plus bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Overview of Past Earnings

During the last quarter, the company reported an EPS beat by $0.04, leading to a 14.87% drop in the share price on the subsequent day.

Here's a look at Simulations Plus's past performance and the resulting price change:

Market Performance of Simulations Plus's Stock

Shares of Simulations Plus were trading at $34.28 as of October 21. Over the last 52-week period, shares are down 12.04%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.

Insights Shared by Analysts on Simulations Plus

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Simulations Plus.

A total of 1 analyst ratings have been received for Simulations Plus, with the consensus rating being Outperform. The average one-year price target stands at $47.0, suggesting a potential 37.11% upside.

Comparing Ratings with Competitors

This comparison focuses on the analyst ratings and average 1-year price targets of Definitive Healthcare, Health Catalyst and HealthStream, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• The consensus among analysts is an Neutral trajectory for Definitive Healthcare, with an average 1-year price target of $5.61, indicating a potential 83.63% downside.
• The consensus among analysts is an Outperform trajectory for Health Catalyst, with an average 1-year price target of $13.12, indicating a potential 61.73% downside.
• Analysts currently favor an Neutral trajectory for HealthStream, with an average 1-year price target of $28.0, suggesting a potential 18.32% downside.

Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for Definitive Healthcare, Health Catalyst and HealthStream, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

Simulations Plus ranks first in revenue growth among its peers. It also leads in gross profit margin. However, it has the lowest return on equity.

Discovering Simulations Plus: A Closer Look

Simulations Plus Inc is engaged in the software industry. It develops and produces software for use in pharmaceutical research and education, and provides consulting and contract research services to the pharmaceutical industry. The company's operating segments include Software and services. It generates maximum revenue from the software segment.

Simulations Plus: A Financial Overview

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Simulations Plus showcased positive performance, achieving a revenue growth rate of 14.23% as of 31 May, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Health Care sector.

Net Margin: Simulations Plus's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 16.92%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 1.75%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Simulations Plus's ROA excels beyond industry benchmarks, reaching 1.62%. This signifies efficient management of assets and strong financial health.

Debt Management: Simulations Plus's debt-to-equity ratio is below the industry average at 0.01, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Simulations Plus visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.