Simulations Plus(US:SLP) ZACKS·2025-11-24 16:01Core Viewpoint - The market anticipates Simulations Plus (SLP) to report a year-over-year increase in earnings despite lower revenues for the quarter ending August 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - Simulations Plus is expected to post quarterly earnings of $0.10 per share, reflecting a year-over-year increase of +66.7%, while revenues are projected to decline by 8.2% to $17.17 million [3]. - The consensus EPS estimate has been revised 18.92% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, complicating predictions for an earnings beat [12]. - The stock holds a Zacks Rank of 1, which typically suggests a strong buy, but the combination with a 0% Earnings ESP makes it challenging to predict a positive surprise [12]. Historical Performance - In the last reported quarter, Simulations Plus exceeded expectations by delivering earnings of $0.45 per share against an expected $0.26, resulting in a surprise of +73.08% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [14]. Market Dynamics - An earnings beat or miss alone may not dictate stock price movement, as other factors can influence investor sentiment [15]. - Investing in stocks expected to beat earnings can enhance success odds, making it essential to consider Earnings ESP and Zacks Rank before quarterly releases [16].