Simulations Plus Q3 revenue beats estimates on the back of services growth
Simulations Plus Q3 revenue beats estimates on the back of services growth
Overview
U.S. drug development software firm's fiscal Q3 revenue rose 7%, beating analyst expectations
Adjusted EPS for fiscal Q3 was $0.30, beating analyst expectations
Company to be acquired by affiliates of Altaris, LLC, per definitive merger agreement after quarter end
Outlook
Simulations Plus expects Altaris acquisition to close in Q4 of calendar 2026
Result Drivers
SERVICES GROWTH - 20% increase in services revenue was the main contributor to overall revenue growth, per CEO Shawn O'Connor
FLAT SOFTWARE REVENUE - Software revenue was unchanged from a year earlier, representing 58% of total revenue
Company press release: ID:nBw1cRQQXa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $21.90 mln | $20.92 mln (6 Analysts) |
Q3 Adjusted EPS | Beat | $0.30 | $0.13 (3 Analysts) |
Q3 EPS |
| $0.18 |
|
Q3 Net Income |
| $3.60 mln |
|
Q3 Adjusted EBITDA |
| $7.90 mln |
|
Q3 Gross Margin |
| 69.00% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 5 "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 $18.50, about 1.3% above its July 8 closing price of $18.27
The stock recently traded at 41 times the next 12-month earnings vs. a P/E of 22 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)