Simulations Plus (SLP) to Post Q3 Earnings: What's in Store?
Simulations Plus, Inc. SLP is slated to release third-quarter fiscal 2021 results on Jul 12.
The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $14.99 million, suggesting growth of 21.8% from the year-ago quarter’s reported figure.
The consensus for fiscal third-quarter earnings has been steady in the past 30 days at 17 cents per share, indicating a deterioration of 15% on a year-over-year basis.
Simulations Plus, Inc. Price and EPS Surprise
Simulations Plus, Inc. price-eps-surprise | Simulations Plus, Inc. Quote
Factors Likely to Have Influenced Q3 Results
Simulations Plus’ fiscal third-quarter performance is likely to have benefited from strength in its software business. In fiscal second quarter, software contributed 60% to the company’s total revenues. The acquisition of Lixoft is expected to have boosted software business performance in the to-be-reported quarter.
Strength in the company’s diversified product portfolio, which includes GastroPlus, MembranePlus, DDDPlus and PKPlus, is likely to get reflected in fiscal third quarter’s top line.
Solid uptick in DILIsym, ADMET Predictor, and other software simulation offerings, including RENAsym, MedChem Designer, KIWI, NAFLDsym, Monolix Suite from Lixoft and IPFsym, combined with advanced analytics functionalities is anticipated to have positively impacted the company’s performance in the quarter under review.
Healthy adoption of the company’s modeling and simulations workflow platform for drug development across pharma and biotech industries, amid the pandemic-triggered escalation in vaccine research and development, may have aided Simulations Plus’ performance.
Favorable mix of higher-margin software business is expected to have benefitted margin performance in the to-be-reported quarter.
Economic weakness led by resurgence in coronavirus cases across several parts of the world (like India) is likely to have impeded renewals and top-line growth. Increasing operating expenses including higher research and development costs might have kept margin expansion under check in fiscal third quarter.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Simulations Plus 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, which makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks that Warrant a Look
Here are a few companies, which have the right combination of elements to post an earnings beat:
Seagate STX has an Earnings ESP of +2.13% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Texas Instruments TXN has an Earnings ESP of +1.60% and a Zacks Rank #2.
Apple AAPL has an Earnings ESP of +0.60% and a Zacks Rank #2.
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