Simulations Plus Inc SLP stock tanked after the company lowered its fiscal 2025 sales outlook.The company expects third-quarter sales of $19 million-$20 million, much below the consensus of $22.78 million.On Wednesday, the company cut its 2025 sales forecast to $76 million—$80 million versus a consensus of $90.26 million, down from prior guidance of $90 million—$93 million.Also Read: What's Going On With Charles River, Certara, Simulations Plus Stocks On Friday?"Market uncertainties surrounding future fundi ...

Core Viewpoint - Toll Brothers, Inc. reported second-quarter fiscal 2025 results with adjusted earnings and total revenues exceeding the Zacks Consensus Estimate, although the top line experienced a year-over-year decline [1][5]. Financial Performance - Adjusted earnings per share (EPS) were $3.50, surpassing the Zacks Consensus Estimate of $2.86 by 22.4% and reflecting a 3.6% increase from the previous year [5]. - Total revenues amounted to $2.74 billion, exceeding the consensus mark of $2.5 billion by 9.5%, but decreased 3.5% year over year [5]. - Home sales revenues increased by 2% year over year to $2.71 billion, contrary to expectations of a 5% decline [5]. - Homes delivered rose by 10% to 2,899 units, surpassing the projected growth of 0.1% [5]. - The average selling price (ASP) of homes delivered was $933,600, down 6.9% from $1,002,300 a year ago [5]. Market Conditions - The quarterly performance was impacted by weak contributions from land sales and other segments, while home sales revenues showed growth [2]. - Ongoing uncertainties in the housing market are anticipated to increase, particularly with the potential implementation of a new tax regime affecting homebuilding costs [2]. Strategic Outlook - The company remains optimistic about long-term growth, supported by a housing shortage and favorable demographics [2]. - Toll Brothers' diversified luxury product offerings and balanced portfolio of build-to-order and spec homes are expected to help navigate challenging market conditions [3]. Shareholder Returns - Following the earnings release, shares rose by 5.1% in after-hours trading, likely driven by a 9% increase in the quarterly dividend to 25 cents per share ($1 annually) [4]. Backlog and Contracts - At the end of the fiscal second quarter, the backlog consisted of 6,063 homes, down 14.5% year over year, with potential revenues from backlog declining 7.3% to $6.84 billion [7]. - Net-signed contracts totaled 2,650 units, a decrease from 3,041 units year over year, with a contract value of $2.6 billion, reflecting an 11.6% decline [6]. Cost Structure - The adjusted home sales gross margin was 27.5%, contracting by 70 basis points [8]. - Selling, general and administrative (SG&A) expenses as a percentage of home sales revenues increased to 9.5%, up 50 basis points from the previous year [8]. Balance Sheet - Cash and cash equivalents stood at $686.5 million, down from $1.3 billion at the end of fiscal 2024 [9]. - The debt-to-capital ratio improved to 26.1% from 27% at the end of fiscal 2024 [9]. Future Guidance - For fiscal Q3, home deliveries are expected to be between 2,800 and 3,000 units, with an average price of $965,000 to $985,000 [11]. - For fiscal 2025, home deliveries are anticipated to range from 11,200 to 11,600 units, with an average price of delivered homes expected to be $945,000 to $965,000 [13].

Core Insights - Landsea Homes Corporation (LSEA) reported disappointing first-quarter 2025 results, with adjusted earnings and total revenues falling short of the Zacks Consensus Estimate [1][4] - The company experienced a year-over-year decline in bottom line while total revenues increased [1] Financial Performance - LSEA reported a loss per share of $0.05, which was worse than the consensus estimate of a loss of $0.03 per share; in the same quarter last year, the company had adjusted earnings per share of $0.10 [4] - Total revenues reached $310.8 million, missing the consensus mark of $320 million by 2.9%, but grew 6% year-over-year from $294 million [4] Segment Performance - Home Sales segment revenues were $299.4 million, reflecting a 2.3% increase from the prior-year quarter; the company delivered 643 new homes, up 27.3% year-over-year, with an average selling price (ASP) of $466,000, down 19.5% year-over-year [5] - Net new home orders rose 11.1% to 679 homes, valued at $317.8 million, with a cancellation rate of 9%, down from 10% a year ago [6] - Lot Sales & Other segment revenues surged 689.4% year-over-year to $11.4 million, with total lots owned or controlled by LSEA increasing to 10,516 from 10,349 a year ago [8] Margin and Cost Analysis - Home closing gross margin contracted by 190 basis points year-over-year to 13%, primarily due to higher discounts, incentives, and increased interest costs [7] Debt and Cash Position - As of March 31, 2025, cash and cash equivalents totaled $36.7 million, down from $53.3 million at the end of 2024; total debt increased to $727.5 million from $725.4 million [9] - The debt to capital ratio was 52.1%, up from 51.8% at the end of 2024, with net debt to total capital at 48.3%, an increase from 47.7% [9] Acquisition Announcement - On May 12, 2025, Landsea Homes announced a definitive agreement for acquisition by New Home Co. at $11.30 per share, representing an enterprise value of approximately $1.2 billion and a 61% premium to LSEA's closing share price on that date [11] - The acquisition is expected to be completed by early third quarter of 2025, pending customary closing conditions [12]

Core Viewpoint - UFP Industries, Inc. reported disappointing first-quarter results for 2025, with both earnings and net sales falling short of expectations and declining year over year due to softer demand and pricing pressures [1][3]. Financial Performance - Earnings per share were $1.30, missing the Zacks Consensus Estimate of $1.59 by 18.2% and down 33.7% from the previous year [3]. - Net sales totaled $1.60 billion, below the consensus mark of $1.63 billion, representing a 2.7% year-over-year decline [3]. - The decline in sales was attributed to a 0.7% decrease in selling prices and a 2% drop in organic unit sales [3]. Segment Performance - **UFP Retail Solutions**: Reported net sales of $607 million, down 3% year over year, with organic unit sales decreasing by 4% [4]. Adjusted EBITDA margin contracted by 290 basis points to 5.9% [4]. - **UFP Packaging**: Net sales were $410 million, down 3% from the previous year, with a 1% decline in selling prices and a 3% drop in organic unit sales [5]. Adjusted EBITDA margin decreased by 190 basis points to 8.5% [5]. - **UFP Construction**: Net sales were $516 million, flat year over year, with organic unit sales growing by 3% but offset by a 3% decline in selling prices [6]. Adjusted EBITDA margin contracted by 320 basis points to 7.2% [7]. Operating Highlights - Selling, general and administrative expenses accounted for 11% of net sales, decreasing by 70 basis points year over year [8]. - Adjusted EBITDA was $142.2 million, down from $180.8 million year over year, with the adjusted EBITDA margin contracting by 210 basis points to 8.9% [8]. Balance Sheet & Cash Flow - As of March 29, 2025, the company had nearly $2.2 billion in liquidity, with cash and cash equivalents at $903.6 million, down from $1.17 billion at the end of 2024 [10]. - Long-term debt was $229.9 million, slightly up from $229.8 million at the end of 2024 [10]. - Net cash used in operating activities was $108.8 million, compared to $16.8 million in the same period last year [10]. Dividend and Share Repurchase - The board approved a quarterly dividend payment of 35 cents per share, a 6% increase from the previous dividend of 33 cents [11]. - The share repurchase program was amended to increase authorization from $200 million to $300 million, with $122 million remaining under the program as of April 28, 2025 [12]. Short-Term Outlook - The company anticipates subdued demand through the remainder of 2025, with a competitive pricing environment across all segments [14]. - UFPI is managing potential impacts from proposed tariffs on raw materials, believing it is well-positioned to adapt with minimal disruption [13]. Long-Term Outlook - Despite near-term challenges, UFPI aims for annual unit sales growth of 7-10% and targets EBITDA margins of 12.5% [15].