Simulations Plus Inc.
SLP
is slated to release first-quarter fiscal 2023 results on Jan 4.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $12.4 million, which suggests growth of 0.1% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at 12 cents per share, indicating a year-over-year decrease of 20%.
The company reported fourth-quarter 2022 adjusted net earnings of 5 cents per share compared with the year ago figure of 1 cent per share. The bottom line missed the Zacks Consensus Estimate of 9 cents per share. Net sales in the fiscal fourth quarter moved up 19% year over year to $11.7 million, which surpassed the consensus estimate by 6.1%.
Simulations Plus, Inc. Price and EPS Surprise
Simulations Plus, Inc. price-eps-surprise
|
Simulations Plus, Inc. Quote
Factors to Note
The increasing demand for the company’s modeling and simulation solutions is likely to boost software sales in the first quarter.
The company’s implementation of cross-selling strategies has seen success with a growing client base using multiple platforms. In the last-reported quarter, the company added seven and five new commercial customers in MonolixSuite and ADMET Predictor, respectively.
The company has also standardized its renewal, pricing, and discounting policies to make it simpler for clients to buy multiple offerings. This is likely to favor top-line performance in the to-be-reported quarter.
In the last-reported quarter, the company unveiled GastroPlus version 9.8.3, which includes an advanced reporting template for interactions with Monolix and validated disease populations for nonalcoholic fatty liver disease and nonalcoholic steatohepatitis. It also includes options for informing the NAFLD DILIsym software. These enhancements are likely to have boosted the adoption of GastroPlus solution.
The company plans to expand its global presence by increasing its presence in Europe, Asia and Latin America and penetrating smaller biotech firms with its software solutions like PBPK and PKPD services.
The company’s launch of ILDsym version 1A, a quantitative system pharmacology modeling software, is likely to help it expand its presence in the biotechnology industry.
Higher costs on product enhancements, acquisitions and research and development are likely to have exerted pressure on margin expansion in the quarter to be reported.
What the Zacks Model Unveils
According to the Zacks model, 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. But that’s not the case here.
Simulations Plus has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter.
Stocks to Consider
Here are some companies which have the right combination of elements to post an earnings beat:
Delta Air Lines
DAL
has an Earnings ESP of +6.92% and currently has a Zacks Rank #2. Delta Air Lines is scheduled to report earnings on Jan 13. You can see
the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Delta Air Lines’ to-be-reported quarter’s earnings and revenues is pegged at $1.25 per share and $12.89 billion, respectively. Delta Air Lines surpassed earnings estimates in two of the preceding four quarters, delivering an average surprise of 7.9%. Shares of DAL lost 18.5% in the past year.
Taiwan Semiconductor
TSM
has an Earnings ESP of +1.69% and currently has a Zacks Rank #2. Taiwan Semiconductor is scheduled to report earnings on Jan 12.
The Zacks Consensus Estimate for Taiwan Semiconductor’s to-be-reported quarter’s earnings and revenues is pegged at $1.78 per share and $20.29 billion, respectively. Taiwan Semiconductor surpassed earnings estimates in all the preceding four quarters, delivering an average surprise of 4.7%. Shares of TSM lost 42.2% in the past year.
Citizens Financial Group
CFG
has an Earnings ESP of +0.96% and currently has a Zacks Rank #2. Citizens Financial Group is scheduled to report earnings on Jan 17.
The Zacks Consensus Estimate for Citizens Financial Group’s to-be-reported quarter’s earnings and revenues is pegged at $1.31 per share and $2.22 billion, respectively. Citizens Financial Group surpassed earnings estimates in all the preceding four quarters, delivering an average surprise of 10.6%. Shares of CFG lost 19.9% in the past year.
Stay on top of upcoming earnings announcements with the Zacks
Earnings Calendar.
Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for the entirety of 2023? From inception in 2012 through November, the
Zacks Top 10 Stocks
portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%.
Now our Director of Research is combing through 4,000 companies covered by the Zacks Rank to handpick the best 10 tickers to buy and hold. Don’t miss your chance to get in on these stocks when they’re released on January 3.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
