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Our mission: Bringing practical business and technical intelligence to today's structured cabling professionals

For more than 30 years, Cabling Installation & Maintenance has provided useful, practical information to professionals responsible for the specification, design, installation and management of structured cabling systems serving enterprise, data center and other environments. These professionals are challenged to stay informed of constantly evolving standards, system-design and installation approaches, product and system capabilities, technologies, as well as applications that rely on high-performance structured cabling systems. Our editors synthesize these complex issues into multiple information products. This portfolio of information products provides concrete detail that improves the efficiency of day-to-day operations, and equips cabling professionals with the perspective that enables strategic planning for networks’ optimum long-term performance.

Throughout our annual magazine, weekly email newsletters and 24/7/365 website, Cabling Installation & Maintenance digs into the essential topics our audience focuses on.

  • Design, Installation and Testing: We explain the bottom-up design of cabling systems, from case histories of actual projects to solutions for specific problems or aspects of the design process. We also look at specific installations using a case-history approach to highlight challenging problems, solutions and unique features. Additionally, we examine evolving test-and-measurement technologies and techniques designed to address the standards-governed and practical-use performance requirements of cabling systems.
  • Technology: We evaluate product innovations and technology trends as they impact a particular product class through interviews with manufacturers, installers and users, as well as contributed articles from subject-matter experts.
  • Data Center: Cabling Installation & Maintenance takes an in-depth look at design and installation workmanship issues as well as the unique technology being deployed specifically for data centers.
  • Physical Security: Focusing on the areas in which security and IT—and the infrastructure for both—interlock and overlap, we pay specific attention to Internet Protocol’s influence over the development of security applications.
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Cabling Installation & Maintenance is published by Endeavor Business Media, a division of EndeavorB2B.

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AspenTech Forms Potentially Bullish Pattern Ahead of Earnings

Aspen technology logoEnterprise software specialist Aspen Technology (NASDAQ: AZPN) has formed a potentially bullish pennant pattern as it pulls back slightly from its October 6 high of $263.59. 

Its weekly chart shows a trend of higher lows and lower highs over the past few weeks, ahead of the company’s fiscal first quarter report on Wednesday. Wall Street expects the maker of plant operations and supply chain management software to earn $1.09 per share on revenue of $227.97 million, increasing over the year-earlier quarter.

The bullish pennant can occur as investors take a breather following a big rally before there’s another catalyst, such as earnings. It could potentially send the price higher.

According to MarketBeat earnings data, AspenTech missed revenue expectations in the past three quarters. That didn’t stop investors from piling into the stock, sending it higher in numerous short- and longer-term rolling timeframes. Recent returns are as follows:

  • One month: +12.60%
  • Three months: +39.13%
  • Year-to-date: +66.65%
  • One year: +58.59%

AspenTech is part of the enterprise software sub-industry within the tech sector. It has a market capitalization of $16.64 billion. That qualifies as a large cap, but with so many bigger companies on the market, it’s not yet part of the S&P 500. 

It’s part of a somewhat glamorous industry, given that several large enterprise-software peers like Salesforce (NYSE: CRM), ServiceNow (NYSE: NOW), Snowflake (NYSE: SNOW), Shopify (NYSE: SHOP) and Datadog (NASDAQ: DDOG) are all large caps that posted strong run-ups in 2020 and 2021. Those stocks became well-known among growth investors and Aspen remained in stealth mode.

Much of that was due to its smaller market cap. Being a component of the S&P 500 means a stock automatically attracts more institutional investors as funds tracking that index must hold positions commensurate with index weightings. 

However, as most stocks in that industry stumbled, Aspen took off. In early 2022, as the broader market and techs were among the biggest decliners, Aspen held steady. The stock traded in a tight range between November 2021 and March of this year, then began rallying in earnest in May. 

Aspen’s business itself is somewhat more obscure, another factor in its low profile among tech investors until just a few months ago. The company helps enterprise clients optimize its digital assets to run assets safer, greener, longer and faster.

AspenTech Forms Potentially Bullish Pattern Ahead Of Earnings

Energy and Industrial Customers 

Rather than serving prominent techs or consumer-facing businesses, AspenTech has a customer base that includes the chemical and energy industries. 

In October of last year, industrial technology and engineering firm Emerson Electric (NYSE: EMR) took a 55% stake in Aspen, with a valuation of $6 billion. That transaction closed in May. Two Emerson software units were wrapped into AspenTech. 

The Emerson deal will also help Aspen make inroads in new industries like pharmaceuticals and expand into China. 

Aspen has had an uneven earnings and revenue growth history. In the past four quarters, revenue results ranged from a year-over-year decline of 64% to a year-over-year gain of 209%.

Its three-year revenue growth rate of -8% reflects that uneven performance.

Irregular Earnings Growth Rates 

Earnings have also grown at irregular rates. The company has been profitable for years, but earnings fell in 2020, from $4.11 per share to $3.78 per share. Its three-year earnings growth rate is -6%.

Despite that negative growth rate, Wall Street expects more going forward. Analysts see earnings coming in at $6.77 per share for fiscal 2023, a gain of 49%. In fiscal 2023, it has risen another 13% to $7.62 per share.

According to MarketBeat analyst data, the consensus rating on the stock is “moderate buy.” Because of the strong recent run-up, a pullback could happen in the not-so-distant future as investors pocket profits. It’s always wise to wait for an earnings release as is the case with AspenTech.

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