Simulations Plus (NASDAQ:SLP) Updates FY 2025 Earnings Guidance

Key Points

• Simulations Plus has updated its FY 2025 earnings guidance, projecting earnings per share between $0.930 and $1.060, significantly higher than the consensus estimate of $0.318.
• The company also provided revenue guidance of $76.0 million-$80.0 million, which is below the consensus revenue estimate of $83.0 million.
• Following the earnings guidance update, shares of Simulations Plus experienced a 3.0% decline in stock price, indicating market apprehension despite the favorable earnings forecast.

Simulations Plus (NASDAQ:SLP - Get Free Report) updated its FY 2025 earnings guidance on Thursday. The company provided EPS guidance of 0.930-1.060 for the period, compared to the consensus EPS estimate of 0.318. The company issued revenue guidance of $76.0 million-$80.0 million, compared to the consensus revenue estimate of $83.0 million.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Stephens dropped their price objective on shares of Simulations Plus from $28.00 to $20.00 and set an "overweight" rating on the stock in a report on Tuesday, July 15th. William Blair reissued an "outperform" rating on shares of Simulations Plus in a research note on Tuesday, July 15th. Wall Street Zen raised shares of Simulations Plus from a "sell" rating to a "hold" rating in a research note on Monday, April 28th. JMP Securities reissued a "market perform" rating on shares of Simulations Plus in a research note on Wednesday, June 18th. Finally, BTIG Research lowered their target price on shares of Simulations Plus from $41.00 to $25.00 and set a "buy" rating on the stock in a research note on Monday, July 7th. Three investment analysts have rated the stock with a hold rating and four have issued a buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $26.50.

Simulations Plus Stock Performance

Shares of NASDAQ:SLP traded down $0.22 during trading hours on Friday, hitting $12.80. 548,948 shares of the company's stock traded hands, compared to its average volume of 1,046,418. Simulations Plus has a 52 week low of $12.39 and a 52 week high of $38.84. The company's fifty day simple moving average is $19.83 and its two-hundred day simple moving average is $26.91. The company has a market cap of $257.66 million, a price-to-earnings ratio of -4.06 and a beta of 0.76.

Simulations Plus (NASDAQ:SLP - Get Free Report) last posted its quarterly earnings data on Monday, July 14th. The technology company reported $0.45 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.19. Simulations Plus had a negative net margin of 78.63% and a positive return on equity of 11.62%. The company had revenue of $20.36 million during the quarter, compared to analyst estimates of $22.83 million. During the same quarter last year, the firm posted $0.27 EPS. The business's revenue for the quarter was up 9.8% on a year-over-year basis. On average, analysts anticipate that Simulations Plus will post 1.09 EPS for the current fiscal year.

Hedge Funds Weigh In On Simulations Plus

Large investors have recently made changes to their positions in the business. Royal Bank of Canada boosted its holdings in shares of Simulations Plus by 26.6% in the first quarter. Royal Bank of Canada now owns 114,885 shares of the technology company's stock worth $2,817,000 after buying an additional 24,132 shares during the period. Woodline Partners LP boosted its holdings in shares of Simulations Plus by 32.1% in the first quarter. Woodline Partners LP now owns 13,239 shares of the technology company's stock worth $325,000 after buying an additional 3,220 shares during the period. Dynamic Technology Lab Private Ltd acquired a new position in shares of Simulations Plus in the first quarter worth about $255,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Simulations Plus by 4.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,493 shares of the technology company's stock worth $233,000 after buying an additional 390 shares during the period. Institutional investors own 78.08% of the company's stock.

About Simulations Plus

Simulations Plus, Inc develops drug discovery and development software for modeling and simulation, and prediction of molecular properties utilizing artificial intelligence and machine learning based technology worldwide. The company operates through two segments, Software and Services. It offers GastroPlus, which simulates the absorption and drug interaction of compounds administered to humans and animals; and DDDPlus and MembranePlus simulation products.