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ANSYS (ANSS) to Post Q2 Earnings: What's in the Offing?
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ANSYS, Inc. (ANSS - Free Report) is set to report second-quarter 2020 results on Aug 5.
For second-quarter 2020, the company anticipates non-GAAP earnings in the range of $1.01-$1.33 per share. The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.16 per share, unchanged in the past 30 days. The figure indicates a decline of 28% from the year-ago reported figure.
Non-GAAP revenues are anticipated between $335 million and $375 million. The Zacks Consensus Estimate for revenues stands at $353.6 million, which suggests a decline of 4.6% from the prior-year quarter.
Notably, the company has a trailing four-quarter earnings surprise of 14.59%, on average.
Factors to Note
ANSYS expects the coronavirus pandemic to defer annual contract value (ACV) and related revenues to the second half of the year. Moreover, trade restrictions imposed on certain entities that were put into effect in 2019 are expected to persist throughout 2020.
Notably, the company witnessed requests for delay in payments, outside of China primarily across the automotive industry. This is likely to have affected its second-quarter performance amid coronavirus crisis induced weakness in automotive space.
Nevertheless, ANSYS’s simulation solutions have been witnessing robust traction in the medical devices market, courtesy of an uptick in demand for medical devices stemming from the coronavirus pandemic. This might get reflected in the to-be-reported quarter’s results.
Further, ANSYS may have benefited from strength across the semiconductor and communication end-markets, driven by increasing use of cloud computing and solid adoption of 5G infrastructure services.
Growing clientele is expected to have contributed to ACV in the second quarter. Notably, the Zacks Consensus Estimate for ACV is pegged at $318 million. In first-quarter, ACV was $301 million.
Besides robust synergies from its partnerships with Autodesk, Microsoft and Rockwell Automation are likely to have aided the company acquire more customers. This, in turn, is expected to have benefited second-quarter performance.
Notably, the Zacks Consensus Estimate for Maintenance and service revenues is pegged at $218 million, which indicates growth of 10% from the year-ago reported figure.
However, consensus mark for Software licenses revenues is pegged at $126 million that suggests a decline of 26.1% from the prior-year quarter.
Notable Developments in Q2
During the second quarter, ANSYS attained certification for its RedHawk system-on-chip (SoC) power noise signoff platform for all Taiwan Semiconductor Manufacturing Company or TSMC's advanced process nodes technologies.
Moreover, the company entered a collaboration deal with Microsoft, Dell and Lendlease to accelerate and simplify the development and implementation of digital twin technologies across multiple industries.
The company also partnered with Electro Magnetic Applications, Inc. (EMA), in a bid to develop design-to-validation workflow, designed to certify cable harness models used in automobiles and aircraft.
Notably, increased expenditure on product enhancements and Research and Development (R&D) is likely to have put pressure on margins in the second quarter.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for ANSYS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Although ANSYS carries a Zacks Rank #2, an Earnings ESP of 0.00% makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Synaptics (SYNA - Free Report) has an Earnings ESP of +10.6 % and a Zacks Rank of 2.
Benefitfocus has an Earnings ESP of +6.25% and a Zacks Rank of 2, currently.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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ANSYS (ANSS) to Post Q2 Earnings: What's in the Offing?
ANSYS, Inc. (ANSS - Free Report) is set to report second-quarter 2020 results on Aug 5.
For second-quarter 2020, the company anticipates non-GAAP earnings in the range of $1.01-$1.33 per share. The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.16 per share, unchanged in the past 30 days. The figure indicates a decline of 28% from the year-ago reported figure.
Non-GAAP revenues are anticipated between $335 million and $375 million. The Zacks Consensus Estimate for revenues stands at $353.6 million, which suggests a decline of 4.6% from the prior-year quarter.
Notably, the company has a trailing four-quarter earnings surprise of 14.59%, on average.
Factors to Note
ANSYS expects the coronavirus pandemic to defer annual contract value (ACV) and related revenues to the second half of the year. Moreover, trade restrictions imposed on certain entities that were put into effect in 2019 are expected to persist throughout 2020.
ANSYS, Inc. Price and EPS Surprise
ANSYS, Inc. price-eps-surprise | ANSYS, Inc. Quote
Notably, the company witnessed requests for delay in payments, outside of China primarily across the automotive industry. This is likely to have affected its second-quarter performance amid coronavirus crisis induced weakness in automotive space.
Nevertheless, ANSYS’s simulation solutions have been witnessing robust traction in the medical devices market, courtesy of an uptick in demand for medical devices stemming from the coronavirus pandemic. This might get reflected in the to-be-reported quarter’s results.
Further, ANSYS may have benefited from strength across the semiconductor and communication end-markets, driven by increasing use of cloud computing and solid adoption of 5G infrastructure services.
Growing clientele is expected to have contributed to ACV in the second quarter. Notably, the Zacks Consensus Estimate for ACV is pegged at $318 million. In first-quarter, ACV was $301 million.
Besides robust synergies from its partnerships with Autodesk, Microsoft and Rockwell Automation are likely to have aided the company acquire more customers. This, in turn, is expected to have benefited second-quarter performance.
Notably, the Zacks Consensus Estimate for Maintenance and service revenues is pegged at $218 million, which indicates growth of 10% from the year-ago reported figure.
However, consensus mark for Software licenses revenues is pegged at $126 million that suggests a decline of 26.1% from the prior-year quarter.
Notable Developments in Q2
During the second quarter, ANSYS attained certification for its RedHawk system-on-chip (SoC) power noise signoff platform for all Taiwan Semiconductor Manufacturing Company or TSMC's advanced process nodes technologies.
Moreover, the company entered a collaboration deal with Microsoft, Dell and Lendlease to accelerate and simplify the development and implementation of digital twin technologies across multiple industries.
The company also partnered with Electro Magnetic Applications, Inc. (EMA), in a bid to develop design-to-validation workflow, designed to certify cable harness models used in automobiles and aircraft.
Notably, increased expenditure on product enhancements and Research and Development (R&D) is likely to have put pressure on margins in the second quarter.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for ANSYS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Although ANSYS carries a Zacks Rank #2, an Earnings ESP of 0.00% makes surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat this quarter:
Cogent Communications Holdings (CCOI - Free Report) has an Earnings ESP of +11.66% and a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Synaptics (SYNA - Free Report) has an Earnings ESP of +10.6 % and a Zacks Rank of 2.
Benefitfocus has an Earnings ESP of +6.25% and a Zacks Rank of 2, currently.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>