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Simulations Plus (SLP) to Report Q2 Earnings: What's in Store?
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Simulations Plus Inc (SLP - Free Report) is slated to release second-quarter fiscal 2023 results on Apr 5.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $16.2 million, which suggests growth of 9.2% from the year-ago quarter’s reported figure. The company expects fiscal second-quarter revenue growth rate to be between 7% and 11%.
The consensus mark for earnings is pegged at 18 cents per share, indicating a year-over-year decrease of 14.3%.
The company reported first-quarter 2023 earnings of 6 cents per share, which were down 60% on a year-over-year basis and missed the Zacks Consensus Estimate by 50%. Revenues of $12 million decreased 4% year over year, affected by lower revenues in Software business segment. The top line missed the Zacks Consensus Estimate by 3.8%.
Increasing demand for the company’s modeling and simulation solutions is likely to have boosted software sales in the second quarter. Also, SLP expects changes in renewal pattern and shift in revenue seasonality to positively impact revenue performance.
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 15 new customers across the portfolio and with 15 upsells.
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 have favored the top-line performance in the to-be-reported quarter.
The company plans to expand globally by increasing its presence in Europe, Asia and Latin America, and penetrating smaller biotech firms with its software solutions like PBPK and PKPD services.
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. Weakness in macro environment, increasing interest rates and forex volatility remain added concerns.
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 #2. 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, per our model, have the right combination of elements to post an earnings beat this time around:
The Zacks Consensus Estimate for Greenbrier’s to-be-reported quarter’s earnings is pegged at 61 cents per share. GBX surpassed earnings estimates in two of the preceding four quarters, delivering an average surprise of 35.9%. Shares of GBX have gained 26.7% in the past year.
Constellation Brands, Inc (STZ - Free Report) has an Earnings ESP of +3.99% and currently has a Zacks Rank #3. Constellation Brands is scheduled to report fourth-quarter fiscal 2023 earnings on Apr 6.
The Zacks Consensus Estimate for Constellation Brands’ to-be-reported quarter’s earnings and revenues is pegged at $1.87 per share and $2.03 billion, respectively. Constellation Brands surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 6.1%. Shares of STZ have lost 4.1% in the past year.
Fastenal Company (FAST - Free Report) has an Earnings ESP of +0.29% and currently has a Zacks Rank #2. Fastenal is scheduled to report first-quarter fiscal 2023 earnings on Apr 13.
The Zacks Consensus Estimate for Fastenal’s to-be-reported quarter’s earnings and revenues is pegged at 49 cents per share and $1.83 billion, respectively. Fastenal surpassed earnings estimates in all the preceding four quarters, delivering an average surprise of 3.3%. Shares of FAST have gained 11.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Simulations Plus (SLP) to Report Q2 Earnings: What's in Store?
Simulations Plus Inc (SLP - Free Report) is slated to release second-quarter fiscal 2023 results on Apr 5.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $16.2 million, which suggests growth of 9.2% from the year-ago quarter’s reported figure. The company expects fiscal second-quarter revenue growth rate to be between 7% and 11%.
The consensus mark for earnings is pegged at 18 cents per share, indicating a year-over-year decrease of 14.3%.
The company reported first-quarter 2023 earnings of 6 cents per share, which were down 60% on a year-over-year basis and missed the Zacks Consensus Estimate by 50%. Revenues of $12 million decreased 4% year over year, affected by lower revenues in Software business segment. The top line missed the Zacks Consensus Estimate by 3.8%.
Simulations Plus, Inc. Price and EPS Surprise
Simulations Plus, Inc. price-eps-surprise | Simulations Plus, Inc. Quote
Factors to Note
Increasing demand for the company’s modeling and simulation solutions is likely to have boosted software sales in the second quarter. Also, SLP expects changes in renewal pattern and shift in revenue seasonality to positively impact revenue performance.
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 15 new customers across the portfolio and with 15 upsells.
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 have favored the top-line performance in the to-be-reported quarter.
The company plans to expand globally by increasing its presence in Europe, Asia and Latin America, and penetrating smaller biotech firms with its software solutions like PBPK and PKPD services.
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. Weakness in macro environment, increasing interest rates and forex volatility remain added concerns.
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 #2. 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, per our model, have the right combination of elements to post an earnings beat this time around:
The Greenbrier Companies, Inc (GBX - Free Report) has an Earnings ESP of +59.78% and currently has a Zacks Rank #3. Greenbrier is scheduled to report second-quarter fiscal 2023 earnings on Apr 10. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Greenbrier’s to-be-reported quarter’s earnings is pegged at 61 cents per share. GBX surpassed earnings estimates in two of the preceding four quarters, delivering an average surprise of 35.9%. Shares of GBX have gained 26.7% in the past year.
Constellation Brands, Inc (STZ - Free Report) has an Earnings ESP of +3.99% and currently has a Zacks Rank #3. Constellation Brands is scheduled to report fourth-quarter fiscal 2023 earnings on Apr 6.
The Zacks Consensus Estimate for Constellation Brands’ to-be-reported quarter’s earnings and revenues is pegged at $1.87 per share and $2.03 billion, respectively. Constellation Brands surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 6.1%. Shares of STZ have lost 4.1% in the past year.
Fastenal Company (FAST - Free Report) has an Earnings ESP of +0.29% and currently has a Zacks Rank #2. Fastenal is scheduled to report first-quarter fiscal 2023 earnings on Apr 13.
The Zacks Consensus Estimate for Fastenal’s to-be-reported quarter’s earnings and revenues is pegged at 49 cents per share and $1.83 billion, respectively. Fastenal surpassed earnings estimates in all the preceding four quarters, delivering an average surprise of 3.3%. Shares of FAST have gained 11.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.