Overview

* Simulations Plus ( SLP ) 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 ( SLP ) 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 ( SLP ) 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/Mis Actual Consensu

s s

Estimate

Q3 Beat $20.40 $20 mln

Revenue mln (7

Analysts

)

Q3 Net Miss -$67.30 $2.01

Income mln mln (5

Analysts

)

Q3 Beat $7.40 $5.48

Adjusted mln mln (6

EBITDA Analysts

)

Q3 Gross 64.0%

Margin

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 ( SLP ) 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:

(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.)