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ANSYS (ANSS) Assists NASCAR to Conduct Virtual Crash Tests

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ANSYS (ANSS - Free Report) has announced that its simulation solutions are being leveraged by NASCAR to reduce material costs for physical testing by $1 million and accelerate validation time using virtual crash tests.

ANSYS’ simulation solutions enabled NASCAR and Elemance LLC engineers to build parts without physical crash test data during the early development stage in 2020 as on-site crash facilities were closed due to the pandemic.

ANSYS, Inc. Price and Consensus

ANSYS, Inc. Price and Consensus

ANSYS, Inc. price-consensus-chart | ANSYS, Inc. Quote

The predictive accuracy of crash simulations allowed NASCAR to overcome these pandemic-induced physical testing difficulties and achieve its aim of introducing the vehicle for the Daytona 500 motor race in February.

Additionally, it evaluated, tested, and validated multidirectional influences, including nonlinear and linear contact to the entire vehicle like frontal hits, roof crashes, lateral side impacts, rear impacts and oblique impacts by incorporating Ansys LS-DYNA into crash testing.

LS-DYNA solution aids automotive customers in precisely ascertaining the behavior of the vehicle and its effects on occupants in case of a collision.

ANSS develops and globally markets engineering simulation software and services widely used by engineers, designers, researchers etc.

Growing demand for simulation products as companies shift to virtual prototyping instead of physical prototyping to save money augurs well for the company.

According to Grand View Research data, the simulation software market is projected to reach $39.74 billion by 2030 at a CAGR of 13.5% between 2022 and 2030.

ANSS’ performance is gaining ground from higher demand and solid traction for its simulation products across verticals like high tech, semiconductor, aerospace and defense. The growing demand for the Internet of Things in the manufacturing industry and energy-efficient products further boosts performance.

Recently ANSYS announced that the BMW Group is expanding its collaboration to produce the first-ever end-to-end tool chain for developing and validating advanced driver assistance systems (ADAS) and automated/autonomous driving functionalities that are expressly governed by safety principles.

The company reported first-quarter 2022 earnings of $1.36 per share, which beat the Zacks Consensus Estimate by 19.3%. The bottom line increased 21.5% year over year.

Non-GAAP revenues of $428.6 million surpassed the Zacks Consensus Estimate by 5.46%. The top line increased 15% (up 18% at constant-currency or cc) from the year-ago quarter.

ANSS currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 29.9% in the past year compared with the industry’s fall of 15.8%.

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Stocks to Consider

Some better-ranked stocks from the broader technology space are Aspen Technology (AZPN - Free Report) , Synopsys (SNPS - Free Report) and Broadcom (AVGO - Free Report) . Synopsys and Broadcom sport a Zacks Rank #1 (Strong Buy) whereas Aspen Technology carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Aspen Technology’s 2022 earnings is pegged at $5.49 per share, increasing 0.4% in the past 60 days. The long-term earnings growth rate is anticipated to be 16.3%.

Aspen Technology’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.1%. Shares of AZPN have soared 22.9% in the past year.

The Zacks Consensus Estimate for Synopsys 2022 earnings is pegged at $8.67 per share, rising 9.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.6%.

Synopsys earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 2.7%. Shares of SNPS have jumped 14.5% in the past year.

The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $37.06 per share, up 3.9% in the past 60 days. AVGO’s expected long-term earnings growth rate is 14.5%.

Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 2.2%. Shares of AVGO have gained 6.2% in the past year.


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