Looking Into Certara's Return On Capital Employed
Portfolio Pulse from Benzinga Insights
Certara (NASDAQ:CERT) reported an 85.2% decrease in Q1 earnings, despite a 4.23% increase in sales to $90.30 million. The company posted a return on capital employed (ROCE) of 0.0%, indicating effective capital allocation. However, Q1 earnings per share of $0.12 did not meet analyst predictions.
May 22, 2023 | 2:55 pm
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NEUTRAL IMPACT
Certara's Q1 earnings decreased by 85.2% while sales increased by 4.23%. The company's ROCE of 0.0% indicates effective capital allocation, but earnings per share missed analyst predictions.
The decrease in earnings and missed analyst predictions may put downward pressure on the stock price. However, the increase in sales and effective capital allocation indicated by the 0.0% ROCE could offset this and result in a neutral short-term impact on the stock price.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100