Benzinga | Jan 8, 2021 10:08AM EST

Earnings Outlook For Simulations Plus

Simulations Plus (NASDAQ:SLP) releases its next round of earnings this Monday, January 11. Get the latest predictions in Benzinga's essential guide to the company's Q1 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Simulations Plus earnings will be near $0.11 per share on sales of $10.64 million, according to analysts. In the same quarter last year, Simulations Plus reported earnings per share of $0.11 on sales of $9.40 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Monday, EPS would be down 0%. Revenue would be have grown 13.18% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate 0.09 0.09 0.14 0.10EPS Actual 0.11 0.20 0.12 0.11Revenue Estimate 9.38 M 11.21 M 9.86 M 8.61 MRevenue Actual 9.54 M 12.30 M 10.35 M 9.40 M

Stock Performance

Over the last 52-week period, shares of Simulations Plus are up 138.23%.

Do not be surprised to see the stock move on comments made during its conference call. Simulations Plus is scheduled to hold the call at 16:15:00 ET and can be accessed here.