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PTC & Trax to Transform Aircraft MRO Maintenance Activities

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PTC Inc (PTC - Free Report) and Trax have collaborated to integrate Trax's platforms with PTC's Servigistics. The collaboration aims to develop innovative joint solutions that enhance efficiency and redefine service supply-chain optimization in airline and MRO maintenance activities.

Servigistics is a service parts optimization solution that utilizes artificial intelligence, machine learning, and advanced data science to solve complex service supply-chain problems. Its features are specifically designed to enable businesses to minimize expenses while increasing customer happiness, equipment uptime, and service levels.

Trax is the industry leader in the global aviation market for mobile and cloud products for aircraft maintenance. Trax products enable digital signatures, paperless working, RFID capability for logistics, web-based applications, and the flexibility to work from any location with access to real-time data.

PTC Inc. Price and Consensus

PTC Inc. Price and Consensus

PTC Inc. price-consensus-chart | PTC Inc. Quote

The collaboration combines Servigistics with Trax's expertise in paperless maintenance software to address complex challenges in the aviation industry service supply chain. Per a report from Grand View Research, the global aircraft MRO market size was valued at $78.60 billion in 2022 and is expected to witness a CAGR of 5.02% from 2023 to 2030.

PTC is a software provider offering a range of cutting-edge digital technologies that collectively revolutionize the engineering, production, and maintenance of tangible goods. The company offers a comprehensive portfolio of software solutions comprising computer-aided design and product lifecycle management.

Revenues for fiscal 2024 are projected to be in the range of $2.270-$2.360 billion, indicating a rise of 8-13% year over year. For fiscal 2024, ARR is expected to be in the range of $2.190-$2.250 billion, which indicates a rise of 11-14% year over year at constant currency.

For fiscal 2024, cash from operations is projected to be $745 million, indicating a rise of 22% on a year-over-year basis. The free cash flow is forecasted to be $725 million, suggesting a 23% year-over-year increase.

At present, PTC carries a Zacks Rank #3 (Hold). Shares of PTC have gained 41.9% compared with the sub-industry’s growth of 42.3% in the past year.

Zacks Investment Research
Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader technology space are Synopsys (SNPS - Free Report) , Pegasystems (PEGA - Free Report) and Iridium Communications (IRDM - Free Report) . Synopsys and Pegasystems sport a Zacks Rank #1 (Strong Buy), while Iridium Communications 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 Synopsys’ 2024 earnings per share (EPS) has decreased 0.7% in the past 60 days to $13.28. SNPS’s long-term earnings growth rate is 17.5%.

Synopsys’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 4.1%. SNPS shares have risen 56.1% in the past year.

The Zacks Consensus Estimate for PEGA’s 2024 EPS has increased 19.4% in the past 60 days to $2.77.

Pegasystems’ earnings beat the Zacks Consensus Estimate in two of the last four quarters, delivering an average earnings surprise of 1063.8%. Shares of PEGA have gained 36.5% in the past year.

The Zacks Consensus Estimate for IRDM’s 2024 EPS has increased 213% in the past 60 days to 72 cents.

Iridium’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, delivering an average earnings surprise of 91.7%. Shares of IRDM have lost 56.1% in the past year.


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