By Kelly Cloonan
Shares of Simulations Plus rose after the company logged higher profit and revenue in its latest quarter due to growth in both its segments.
The stock climbed, 12% to $14.57, after-hours Thursday. Through market close, shares are down 29% year to date.
The company, which aims to accelerate drug development with artificial intelligence, posted a fiscal second-quarter profit of $4.5 million, or 22 cents a share, compared with $3.1 million, or 15 cents a share, a year earlier.
Adjusted earnings per share were 35 cents, compared with estimates of 32 cents a share according to analysts polled by FactSet.
Revenue rose 8%, to $24.3 million, compared with analyst estimates of $21.7 million.
Software revenue rose 9%, with strength in discovery and development solutions. The company also continued to add new customers and upsell to existing customers, it said.
The Durham, N.C., company's services segment, meanwhile, posted 8% growth due to strong development solutions and bookings.
"Market conditions remain favorable. Globally, ongoing most-favored-nation pricing agreements, reduced tariff threats, and an improving funding environment are benefiting our clients," Chief Executive Shawn O'Connor said.
For the full year, the company cut its outlook for adjusted earnings per share to a range of 75 cents to 85 cents, compared with $1.03 to $1.10 previously, due to an increase in the expected effective tax rate. The company continues to expect revenue of $79 million to $82 million for the year.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
April 09, 2026 17:44 ET (21:44 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments