Simulations Plus (SLP) shares ended the last trading session 8.9% higher at $30.04. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 18.8% loss over the past four weeks.
The increase in share price can be attributed to strong topline performance. Synergies stemming from acquisitions and organic bases are driving the growth trajectory. New customer wins and increasing sales with existing customers of GastroPlus, MonolixSuite and ADMET Predictor offerings are driving the Software segment’s results. Services’ revenues gained from steady growth in QSP and CPP business units.
In the last reported quarter, its organic revenue growth was 14%, eliminating the $2.3 million contribution from Pro-ficiency, which was acquired in June.
For fiscal 2025, Simulations Plus expects revenues to be between $90 million and $93 million. This suggests an increase of 28-33% from fiscal 2024 revenues. The company anticipates continued revenue growth, with organic growth projected between 10% and 15%. In addition, the Pro-ficiency acquisition is expected to contribute an additional $15 million to $18 million to revenues, further boosting the company’s financial outlook.
Simulation Plus recently secured a new grant deal from the U.S. Food and Drug Administration. The funding supports the use of its premium GastroPlus software in physiologically based pharmacokinetic modeling to create and validate mechanistic in vitro-in vivo correlations for long-acting injectable drug technologies. This project is a collaborative effort with the University of Connecticut’s School of Pharmacy, specifically its Department of Pharmaceutical Sciences.
This maker of software used in pharmaceutical research is expected to post quarterly earnings of $0.18 per share in its upcoming report, which represents a year-over-year change of +80%. Revenues are expected to be $18.69 million, up 28.9% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Simulations Plus, the consensus EPS estimate for the quarter has been revised 105.9% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on SLP going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Simulations Plus is part of the Zacks Computer - Software industry. Autodesk (ADSK), another stock in the same industry, closed the last trading session 2.5% higher at $315.41. ADSK has returned 7.5% in the past month.
Autodesk's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $2.11. Compared to the company's year-ago EPS, this represents a change of +1.9%. Autodesk currently boasts a Zacks Rank of #4 (Sell).
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