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PTC Gears Up to Report Q3 Earnings: What's in the Offing?
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PTC Inc (PTC - Free Report) is slated to report third-quarter fiscal 2024 results on Jul 31, after the closing bell.
The Zacks Consensus Estimate for revenues is pegged at $533 million, indicating a decline of 1.7% from the year-ago reported number. The consensus estimate for earnings is pegged at 98 cents per share, down 1% from the prior year.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of 8.8%, on average.
For the quarter, the company projects revenues between $525 million and $540 million. Non-GAAP EPS is expected to be between 90 cents per share and $1.
PTC's core business segments - CAD (Computer-Aided Design) and PLM (Product Lifecycle Management) solutions - continue to be major revenue drivers and are likely to have cushioned its performance in the to-be-reported quarter.
Healthy adoption of its premium PLM product, Windchill software, among various sectors is expected to have driven PTC’s top-line performance. The company is focusing on Codebeamer and Windchill integration to streamline software and hardware configuration management. Product updates and innovations to Creo and the other CAD design tools are likely to have contributed to revenues.
Growth in recurring revenue bodes well. PTC’s investments in emerging technologies such as IoT (Internet of Things), AR (Augmented Reality) and AI (Artificial Intelligence) align with industry trends.
Strategic partnerships bode well. In April 2024, PTC partnered with Trax to integrate Trax's platforms with PTC's Servigistics. The firms aim to design unique joint solutions that improve efficiency and modernize service supply-chain optimization in airline and MRO maintenance activities.
Apart from these, the shift toward a subscription-based model and efforts to enhance operational discipline is driving cash flow. For the fiscal third quarter, PTC expects ARR to be between $2.115 billion and $2.130 billion. Cash from operations is projected to be $225 million and free cash flow is forecasted to be $220 million.
Nonetheless, adverse foreign currency movement and global macroeconomic weakness are likely to have acted as headwinds. Also, increasing research and development costs to fend off stiff competition in PLM and CAD space are likely to have weighed on margin performance.
What Our Model Says
Our proven model predicts an earnings beat for PTC 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.
PTC has an Earnings ESP of +1.47% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With Favorable Combination
Here are some other stocks you may consider, as our proven model shows that these,too, have the right mix of elements to beat estimates this time around.
The Zacks Consensus Estimate for PINS’s to-be-reported quarter’s EPS and revenues is pegged at 28 cents per share and $847.8 million, respectively. Shares of PINS have gained 29.5% in the past year.
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.66%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s EPS and revenues is pegged at 95 cents per share and $207.6 million, respectively. Shares of SIMO have gained 10.5% in the past year.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +1.72%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Jul 30.
The Zacks Consensus Estimate for ANET’s to-be-reported quarter’s EPS and revenues is pegged at $1.94 and $1.64 billion, respectively. Shares of ANET have gained 105.8% in the past year.
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PTC Gears Up to Report Q3 Earnings: What's in the Offing?
PTC Inc (PTC - Free Report) is slated to report third-quarter fiscal 2024 results on Jul 31, after the closing bell.
The Zacks Consensus Estimate for revenues is pegged at $533 million, indicating a decline of 1.7% from the year-ago reported number. The consensus estimate for earnings is pegged at 98 cents per share, down 1% from the prior year.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. It has a trailing four-quarter earnings surprise of 8.8%, on average.
For the quarter, the company projects revenues between $525 million and $540 million. Non-GAAP EPS is expected to be between 90 cents per share and $1.
PTC Inc. Price and EPS Surprise
PTC Inc. price-eps-surprise | PTC Inc. Quote
Factors at Play
PTC's core business segments - CAD (Computer-Aided Design) and PLM (Product Lifecycle Management) solutions - continue to be major revenue drivers and are likely to have cushioned its performance in the to-be-reported quarter.
Healthy adoption of its premium PLM product, Windchill software, among various sectors is expected to have driven PTC’s top-line performance. The company is focusing on Codebeamer and Windchill integration to streamline software and hardware configuration management. Product updates and innovations to Creo and the other CAD design tools are likely to have contributed to revenues.
Growth in recurring revenue bodes well. PTC’s investments in emerging technologies such as IoT (Internet of Things), AR (Augmented Reality) and AI (Artificial Intelligence) align with industry trends.
Strategic partnerships bode well. In April 2024, PTC partnered with Trax to integrate Trax's platforms with PTC's Servigistics. The firms aim to design unique joint solutions that improve efficiency and modernize service supply-chain optimization in airline and MRO maintenance activities.
Apart from these, the shift toward a subscription-based model and efforts to enhance operational discipline is driving cash flow. For the fiscal third quarter, PTC expects ARR to be between $2.115 billion and $2.130 billion. Cash from operations is projected to be $225 million and free cash flow is forecasted to be $220 million.
Nonetheless, adverse foreign currency movement and global macroeconomic weakness are likely to have acted as headwinds. Also, increasing research and development costs to fend off stiff competition in PLM and CAD space are likely to have weighed on margin performance.
What Our Model Says
Our proven model predicts an earnings beat for PTC 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.
PTC has an Earnings ESP of +1.47% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With Favorable Combination
Here are some other stocks you may consider, as our proven model shows that these,too, have the right mix of elements to beat estimates this time around.
Pinterest (PINS - Free Report) is set to release quarterly numbers on Jul 30. It has an Earnings ESP of +7.14% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PINS’s to-be-reported quarter’s EPS and revenues is pegged at 28 cents per share and $847.8 million, respectively. Shares of PINS have gained 29.5% in the past year.
The Earnings ESP for Silicon Motion Technology Corporation (SIMO - Free Report) is +2.66%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s EPS and revenues is pegged at 95 cents per share and $207.6 million, respectively. Shares of SIMO have gained 10.5% in the past year.
The Earnings ESP for Arista Networks, Inc. (ANET - Free Report) is +1.72%, and it sports a Zacks Rank of 1. The company is scheduled to report quarterly numbers on Jul 30.
The Zacks Consensus Estimate for ANET’s to-be-reported quarter’s EPS and revenues is pegged at $1.94 and $1.64 billion, respectively. Shares of ANET have gained 105.8% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.