Simulations Plus (SLP) Lags Q1 Earnings Estimates

Core Viewpoint - Simulations Plus reported quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.18 per share, but showing an increase from $0.10 per share a year ago, indicating a -5.56% earnings surprise [1] Financial Performance - The company posted revenues of $18.92 million for the quarter ended November 2024, surpassing the Zacks Consensus Estimate by 1.25%, and up from $14.5 million year-over-year [2] - Over the last four quarters, Simulations Plus has exceeded consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Performance - Simulations Plus shares have increased approximately 4.3% since the beginning of the year, outperforming the S&P 500's gain of 1.6% [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.28 for the coming quarter and $1.11 for the current fiscal year, alongside revenues of $23.46 million and $90.87 million respectively [7] - The estimate revisions trend for Simulations Plus is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6] Industry Context - The Computer - Software industry, to which Simulations Plus belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges ahead [8] - Another company in the same industry, PTC Inc., is expected to report quarterly earnings of $0.91 per share, reflecting a year-over-year decline of 18% [9]