Engineering simulation software provider Ansys (NASDAQ:ANSS) will be reporting results tomorrow after the bell. Here’s what to look for.
ANSYS beat analysts’ revenue expectations by 16% last quarter, reporting revenues of $601.9 million, up 31.2% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ annual contract value estimates.
Is ANSYS a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ANSYS’s revenue to grow 7% year on year to $861.3 million, slowing from the 16% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.86 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ANSYS has missed Wall Street’s revenue estimates twice over the last two years.
Looking at ANSYS’s peers in the vertical software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Procore delivered year-on-year revenue growth of 16.2%, beating analysts’ expectations by 1.4%, and PTC reported revenues up 2.7%, topping estimates by 1.9%. Procore traded up 16.5% following the results while PTC was down 9.6%.
Read our full analysis of Procore’s results here and PTC’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 4.8% on average over the last month. ANSYS is down 4.3% during the same time and is heading into earnings with an average analyst price target of $350.71 (compared to the current share price of $337).
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