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) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.930-1.060 for the period, compared to the consensus 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.

Simulations Plus Stock Performance

Shares of NASDAQ SLP traded up $0.21 during mid-day trading on Monday, hitting $13.01. 147,638 shares of the stock were exchanged, compared to its average volume of 436,882. The company has a market cap of $261.85 million, a P/E ratio of -4.13 and a beta of 0.76. The stock's fifty day simple moving average is $19.43 and its two-hundred day simple moving average is $26.76. Simulations Plus has a twelve month low of $12.39 and a twelve month high of $37.95.

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, topping the consensus estimate of $0.26 by $0.19. The company had revenue of $20.36 million during the quarter, compared to analyst estimates of $22.83 million. Simulations Plus had a negative net margin of 78.63% and a positive return on equity of 11.62%. The company's revenue was up 9.8% on a year-over-year basis. During the same quarter last year, the business posted $0.27 earnings per share. As a group, equities research analysts predict that Simulations Plus will post 1.09 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Royal Bank of Canada boosted its position in shares of Simulations Plus by 26.6% during the 1st quarter. Royal Bank of Canada now owns 114,885 shares of the technology company's stock worth $2,817,000 after acquiring an additional 24,132 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new position in Simulations Plus in the 1st quarter valued at approximately $255,000. Woodline Partners LP lifted its stake in Simulations Plus by 32.1% in the 1st quarter. Woodline Partners LP now owns 13,239 shares of the technology company's stock valued at $325,000 after purchasing an additional 3,220 shares during the last quarter. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in Simulations Plus by 4.3% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 9,493 shares of the technology company's stock valued at $233,000 after purchasing an additional 390 shares during the last quarter. Institutional investors and hedge funds 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.