ReElement Technologies stock soars after securing $1.4B government deal
Investing.com - Simulations Plus (NASDAQ:SLP) exceeded fourth-quarter revenue expectations according to preliminary fiscal year 2025 results, while Citizens maintained its Market Perform rating on the stock. According to InvestingPro data, the company maintains strong financial health with a current ratio of 5.11, indicating robust liquidity despite the stock’s 56% decline over the past six months.
The company reported implied fourth-quarter revenue of $17.4 million, surpassing consensus estimates of $16.4 million, according to Citizens analyst Constantine Davides who reiterated the Market Perform rating. InvestingPro analysis suggests the stock is currently undervalued, though it trades at a relatively high EV/EBITDA multiple of 22.6x.
Implied fourth-quarter EBITDA reached approximately $3.7 million based on a preliminary fiscal year 2025 EBITDA margin of 28%, significantly higher than the previous estimate of $1.4 million.
The company’s estimated fiscal year 2025 software revenue mix finished at 58%, suggesting fourth-quarter software and services revenue declined by 6% and 8% respectively, following the June 11, 2024 anniversary of the Pro-ficiency acquisition.
Simulations Plus is scheduled to report complete fourth-quarter and fiscal year 2025 results on December 1, after market close.
In other recent news, Simulations Plus announced its preliminary fiscal 2026 revenue guidance, estimating $79-82 million, which suggests flat to 4% growth compared to fiscal 2025’s $79.1 million. The company also projects adjusted diluted earnings per share of $1.03-$1.10 for fiscal 2026, with an adjusted EBITDA margin between 26-30%. In terms of analyst activity, TD Cowen initiated coverage on Simulations Plus with a Hold rating and set a price target of $16.00, acknowledging the company’s competitive biosimulation platform as a positive aspect. Additionally, Simulations Plus reported a 70% success rate in its AI-driven drug design collaboration with the Institute of Medical Biology of the Polish Academy of Sciences. The project focused on developing novel compounds targeting inflammation and immune responses, with 70% of the 27 compounds designed showing significant inhibition of RORγT activity. The lead compound displayed potent inverse agonist activity with a unique indolizine scaffold. These developments highlight the company’s ongoing efforts in biosimulation and cheminformatics.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.