Certara (NASDAQ:CERT) Reports Quarterly Earnings Results, Falls Short of Expectations

Certara (NASDAQ:CERT) announced its quarterly earnings results on Wednesday. The company recorded earnings per share (EPS) of $0.12 for the quarter, which was below analysts' expectations of $0.13 by a margin of $0.01. Certara reported a negative net margin of 8.34%, indicating that the costs exceeded its revenue for the period. However, it also registered a positive return on equity of 3.43%, which shows that the company is generating some profit relative to shareholder equity.

Stock Performance

Following the earnings announcement, Certara's stock experienced a slight decline, dropping 0.4% and closing at $12.33. During trading, the company saw a volume of 1,222,313 shares, which is somewhat lower than its average trading volume of 1,274,044 shares. Over the last year, Certara's stock has fluctuated significantly, reaching a 52-week low of $9.41 and a high of $19.87. Currently, the company has a 50-day simple moving average of $12.36 and a 200-day simple moving average of $11.63. Certara's market capitalization stands at approximately $1.98 billion, and its price-to-earnings (P/E) ratio is -61.65, with a PEG ratio of 9.29 and a beta of 1.57. The company holds a quick ratio and a current ratio of 2.86, illustrating its good liquidity position, while its debt-to-equity ratio is relatively low at 0.28.

Analyst Outlook

Many Wall Street analysts have commented on Certara's stock following the recent earnings report. Robert W. Baird lowered its target price for Certara from $18.00 to $13.00, rating the stock as 'neutral.' Additionally, Barclays revised its price objective from $14.00 to $12.00, also giving the stock an 'equal weight' rating. Currently, six investment analysts have rated Certara as a hold, while two analysts have issued a buy rating, leading to a consensus rating of 'Hold' with an average price target of $15.92 according to MarketBeat data.

Company Overview

Certara, Inc. operates in the biopharmaceutical sector, providing software products and technology-enabled services aimed at biosimulation in drug discovery, preclinical testing, clinical research, regulatory submissions, and market access. With a focus on model-informed drug development, Certara's biosimulation solutions help predict pharmacokinetics and pharmacodynamics in therapies.

earnings, stocks, analysis