Simulations Plus Q3 revenue up 10%, beats estimates
Overview
Simulations Plus fiscal Q3 revenue rises 10%, beating analyst expectations, per LSEG data
The provider of simulation software and consulting services for drug research and development posts net loss of $67.3 mln due to a $77.2 mln impairment charge
Adjusted EBITDA of $7.4 mln beats analyst estimates, per LSEG data
Outlook
Simulations Plus reaffirms FY 2025 revenue guidance of $76 mln -$80 mln
Company projects FY 2025 adjusted diluted EPS of $0.93-$1.06
Company notes cautious spending behavior affecting service revenue
Simulations Plus focuses on AI-driven initiatives for growth
Result Drivers
SOFTWARE GROWTH - Driven by ADMET Predictor® and modest gains in GastroPlus® and MonolixSuite(TM), per CEO Shawn O’Connor
SERVICES PERFORMANCE - Medical Communications services saw strong growth, offsetting declines in other areas due to client caution and project delays
IMPAIRMENT CHARGE - $77.2 million non-cash impairment charge impacted net income
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $20.40 mln | $20 mln (7 Analysts) |
Q3 Net Income | Miss | -$67.30 mln | $2.01 mln (5 Analysts) |
Q3 Adjusted EBITDA | Beat | $7.40 mln | $5.48 mln (6 Analysts) |
Q3 Gross Margin | 64.0% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the advanced medical equipment & technology peer group is "buy"
Wall Street's median 12-month price target for Simulations Plus Inc is $26.50, about 36% above its July 11 closing price of $16.96
The stock recently traded at 35 times the next 12-month earnings vs. a P/E of 43 three months ago
Press Release:
