Certara (NASDAQ:CERT) Releases FY 2025 Earnings Guidance

Key Points

• Certara updated its FY 2025 earnings guidance, projecting earnings per share between $0.420 and $0.460, which is lower than the consensus estimate of $0.464.
• The company also issued revenue guidance of $415 million to $425 million, slightly below the consensus estimate of $421.1 million.
• Recent brokerages' ratings for Certara show mixed opinions, with UBS lowering its target price to $15.00 while Barclays raised it to $14.00, indicating varying levels of confidence in the stock.

Certara (NASDAQ:CERT - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided EPS guidance of 0.420-0.46 for the period, compared to the consensus EPS estimate of 0.464. The company issued revenue guidance of $415.0 million-$425.0 million, compared to the consensus revenue estimate of $421.1 million.

Certara Price Performance

CERT traded down $0.47 during trading on Monday, reaching $10.47. 1,920,474 shares of the company were exchanged, compared to its average volume of 1,723,568. The company's 50-day moving average is $10.92 and its two-hundred day moving average is $11.73. Certara has a 12-month low of $8.64 and a 12-month high of $15.69. The company has a market cap of $1.68 billion, a price-to-earnings ratio of 209.44 and a beta of 1.42. The company has a quick ratio of 2.16, a current ratio of 2.16 and a debt-to-equity ratio of 0.27.

Certara (NASDAQ:CERT - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The company reported $0.07 earnings per share for the quarter, missing the consensus estimate of $0.10 by ($0.03). Certara had a net margin of 1.97% and a return on equity of 5.11%. The business had revenue of $104.57 million during the quarter, compared to analysts' expectations of $104.14 million. During the same period in the previous year, the business earned $0.07 EPS. The business's revenue was up 12.1% on a year-over-year basis. Research analysts forecast that Certara will post 0.28 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several research firms have weighed in on CERT. JMP Securities reaffirmed a "market perform" rating on shares of Certara in a report on Tuesday, May 6th. KeyCorp reduced their price objective on Certara from $18.00 to $15.00 and set an "overweight" rating on the stock in a research report on Monday, July 14th. Barclays upgraded Certara from an "equal weight" rating to an "overweight" rating and increased their price objective for the company from $11.00 to $14.00 in a research report on Thursday, May 8th. UBS Group reduced their price objective on Certara from $17.50 to $15.00 and set a "buy" rating on the stock in a research report on Thursday. Finally, Morgan Stanley started coverage on Certara in a research report on Thursday, July 3rd. They set an "equal weight" rating and a $16.00 price objective on the stock. Four analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $15.14.

Hedge Funds Weigh In On Certara

Institutional investors and hedge funds have recently bought and sold shares of the stock. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Certara by 13.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 299,528 shares of the company's stock worth $2,965,000 after acquiring an additional 35,954 shares during the last quarter. Jane Street Group LLC grew its position in Certara by 17.1% during the 1st quarter. Jane Street Group LLC now owns 277,054 shares of the company's stock worth $2,743,000 after acquiring an additional 40,463 shares during the last quarter. Goldman Sachs Group Inc. grew its position in Certara by 65.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 228,996 shares of the company's stock worth $2,267,000 after acquiring an additional 90,724 shares during the last quarter. Finally, AQR Capital Management LLC bought a new position in Certara during the 1st quarter worth approximately $259,000. 73.96% of the stock is currently owned by institutional investors.

About Certara

Certara, Inc, together with its subsidiaries, provides software products and technology-enabled services to customers for biosimulation in drug discovery, preclinical and clinical research, regulatory submissions, and market access in the United States and internationally. It offers solutions for model-informed drug development, as well as biosimulation solution used to predict both pharmacokinetics and pharmacodynamics.