Simulations Plus (SLP) Stock Jumps 8.9%: Will It Continue to Soar?

Core Viewpoint - Simulations Plus (SLP) experienced an 8.9% increase in share price, closing at $30.04, following a significant volume of trading, contrasting with an 18.8% decline over the previous four weeks [1] Financial Performance - The increase in share price is attributed to strong topline performance driven by synergies from acquisitions and organic growth, with new customer acquisitions and increased sales in the Software segment contributing positively [2] - In the last reported quarter, the company achieved an organic revenue growth of 14%, excluding a $2.3 million contribution from the Pro-ficiency acquisition [3] Revenue Projections - For fiscal 2025, Simulations Plus anticipates revenues between $90 million and $93 million, indicating a growth of 28-33% from fiscal 2024 revenues, with organic growth projected between 10% and 15% [4] - The Pro-ficiency acquisition is expected to add an additional $15 million to $18 million to revenues, enhancing the financial outlook [4] Grants and Collaborations - Simulations Plus secured a grant from the U.S. Food and Drug Administration to support the use of its GastroPlus software in pharmacokinetic modeling, in collaboration with the University of Connecticut's School of Pharmacy [5] Earnings Expectations - The company is projected to report quarterly earnings of $0.18 per share, reflecting an 80% year-over-year increase, with revenues expected to reach $18.69 million, up 28.9% from the previous year [6] - The consensus EPS estimate for the quarter has been revised 105.9% higher in the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [7] Industry Context - Simulations Plus operates within the Zacks Computer - Software industry, where Autodesk (ADSK) also resides, having closed 2.5% higher recently and showing a 7.5% return over the past month [7]