Simulations Plus Earnings Preview

On Monday, July 12, Simulations Plus SLP will release its latest earnings report. Decipher the announcement with Benzinga's help.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts expect Simulations Plus earnings of $0.18 per share. Revenue will likely be around $14.74 million, according to the consensus estimate. In the same quarter last year, Simulations Plus reported EPS of $0.2 on revenue of $12.30 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The analyst consensus estimate would represent a 10.0% decrease in the company's earnings. Sales would be up 19.86% from the year-ago period. Here is how the company's reported EPS has compared to analyst estimates in the past:

Stock Performance

Shares of Simulations Plus were trading at $53.15 as of July 08. Over the last 52-week period, shares are down 14.78%. Given that these returns are generally negative, long-term shareholders are probably unhappy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Simulations Plus is scheduled to hold the call at 16:15:00 ET and can be accessed here.