We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Aspen (AZPN) Q4 Earnings & Revenues Surpass Estimates, Up Y/Y
Read MoreHide Full Article
Aspen Technology (AZPN - Free Report) reported fourth-quarter fiscal 2024 non-GAAP earnings of $2.37 per share, beating the Zacks Consensus Estimate of $2.08. AZPN reported non-GAAP earnings of $2.13 per share in the year-ago quarter.
The company reported revenues of $342.9 million, surpassing the Zacks Consensus Estimate by 8.7%. The company generated revenues of $320.6 million in the year-ago quarter.
Aspen suspended all commercial activities in Russia following the expanded sanctions announced by the U.S. government in June 2024. As a result, the company has written off approximately $35.5 million in ACV, effective at the end of fiscal 2024.
Aspen Technology, Inc. Price, Consensus and EPS Surprise
License’s revenues (67.4% of revenues) were up 3.7% year over year to $231 million.
Maintenance’s revenues (26% of revenues) rose 8% year over year to $89.2 million.
Revenues from Services and other (6.6% of revenues) rose 49.8% from the year-ago quarter’s figure to $22.7 million.
As of Jun 30, 2024, annual contract value or ACV ( which Aspen Technology defines as the estimate of the annual value of our portfolio of term license and software maintenance and support, or SMS, contracts, the annual value of SMS agreements purchased with perpetual licenses and the annual value of standalone SMS agreements purchased with certain legacy term license agreements, which have become an immaterial part of its business) amounted to $968.4 million, up 9.4% year over year and 3.5% quarter over quarter.
The digital grid management suite (DGM) grew around 40% in fiscal 2024, highlighting the suite's strength and the early advantages of enhancing DGM’s go-to-market capabilities. The company also saw a solid uptake across the Manufacturing & Supply Chain suite (MSC) in the second half of fiscal 2024 and especially in the fourth quarter, despite this suite experiencing the most noticeable impact from the extended downturn in the chemicals sector.
Margins
Gross profit increased to $246.3 million from the year-ago quarter’s figure of $225.1 million. As a percentage of total revenues, the figure reached 71.8% from 70.2% reported in the prior-year quarter.
Total operating expenses amounted to $207.1 million compared with the year-ago quarter’s figure of $219.1 million due to a reduction in research and development costs, general and administrative expenses, along selling and marketing costs.
Non-GAAP operating income totaled $173.4 million compared with $148.9 million reported in the prior-year quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash and cash equivalents were $237 million compared with $241.2 million as of Jun 30, 2023. The downtick was caused primarily by the impact of share repurchase activity
The company generated $154.9 million in cash from operations compared with $113.6 million reported in the year-ago quarter. Non-GAAP free cash flow was $153 million in the fiscal third quarter compared with $111.5 million in the prior-year quarter.
Aspen repurchased 277,913 shares for $56.9 million in the fourth quarter of fiscal 2024.
As of Jun 30, 2024, the company executed its fiscal 2024 share buyback authorization, repurchasing 1,520,993 shares in total in fiscal 2024. Aspen’s board of directors has sanctioned a new share repurchase program, allowing the company to buy back up to $100 million worth of its stock during fiscal 2025.
Fiscal 2025 Guidance
The guidance for fiscal 2025 highlights the impact of cautious customer spending in the face of an uncertain economic and geopolitical environment. However, the company expects continued strength in the utilities and energy sector, but a muted growth in chemicals and a more moderate sustainability CapEx environment.
For fiscal 2025, Aspen expects revenues to be at least $1.19 billion.
Non-GAAP net income is now anticipated to be at least $7.47 per share.
Management projects ACV growth to be at least 9% from a year ago and total bookings to be at least $1.17 billion.
Non-GAAP operating income is now estimated to be at least $514 million. Non-GAAP total expenses are expected to be nearly $675 million.
Free cash flow is projected to be at least $340 million.
Zacks Rank
Aspen currently has a Zacks Rank #3 (Hold). In the past year, the stock has lost 3.9% against the sub-industry’s growth of 19%.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 4.37% in the past 60 days to $4.06. The company recently reported results for second-quarter 2024, wherein EPS of $1.12 topped the Zacks Consensus Estimate by 14.3%. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 4.0% in the past 60 days to $8.24. The company recently reported results for second-quarter 2024, wherein EPS of $2.10 beat the Zacks Consensus Estimate by 16 cents. Quarterly revenues were $1.69 billion, up 15.8% from $1.46 billion in the year-ago quarter and surpassed the consensus mark by $1.64 billion.
The Zacks Consensus Estimate for SAP’s 2024 EPS has increased 4.2% in the past 60 days to $4.75. The company recently reported results for second-quarter of 2024 wherein non-IFRS earnings came in at €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01. Total revenues on a non-IFRS basis of €8.288 billion ($8,921.3 million), rose 10% year over year both at nominal and constant currencies (cc) basis. The Zacks Consensus Estimate was pegged at $8,864.7 million.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Aspen (AZPN) Q4 Earnings & Revenues Surpass Estimates, Up Y/Y
Aspen Technology (AZPN - Free Report) reported fourth-quarter fiscal 2024 non-GAAP earnings of $2.37 per share, beating the Zacks Consensus Estimate of $2.08. AZPN reported non-GAAP earnings of $2.13 per share in the year-ago quarter.
The company reported revenues of $342.9 million, surpassing the Zacks Consensus Estimate by 8.7%. The company generated revenues of $320.6 million in the year-ago quarter.
Aspen suspended all commercial activities in Russia following the expanded sanctions announced by the U.S. government in June 2024. As a result, the company has written off approximately $35.5 million in ACV, effective at the end of fiscal 2024.
Aspen Technology, Inc. Price, Consensus and EPS Surprise
Aspen Technology, Inc. price-consensus-eps-surprise-chart | Aspen Technology, Inc. Quote
Quarter in Detail
License’s revenues (67.4% of revenues) were up 3.7% year over year to $231 million.
Maintenance’s revenues (26% of revenues) rose 8% year over year to $89.2 million.
Revenues from Services and other (6.6% of revenues) rose 49.8% from the year-ago quarter’s figure to $22.7 million.
As of Jun 30, 2024, annual contract value or ACV ( which Aspen Technology defines as the estimate of the annual value of our portfolio of term license and software maintenance and support, or SMS, contracts, the annual value of SMS agreements purchased with perpetual licenses and the annual value of standalone SMS agreements purchased with certain legacy term license agreements, which have become an immaterial part of its business) amounted to $968.4 million, up 9.4% year over year and 3.5% quarter over quarter.
The digital grid management suite (DGM) grew around 40% in fiscal 2024, highlighting the suite's strength and the early advantages of enhancing DGM’s go-to-market capabilities. The company also saw a solid uptake across the Manufacturing & Supply Chain suite (MSC) in the second half of fiscal 2024 and especially in the fourth quarter, despite this suite experiencing the most noticeable impact from the extended downturn in the chemicals sector.
Margins
Gross profit increased to $246.3 million from the year-ago quarter’s figure of $225.1 million. As a percentage of total revenues, the figure reached 71.8% from 70.2% reported in the prior-year quarter.
Total operating expenses amounted to $207.1 million compared with the year-ago quarter’s figure of $219.1 million due to a reduction in research and development costs, general and administrative expenses, along selling and marketing costs.
Non-GAAP operating income totaled $173.4 million compared with $148.9 million reported in the prior-year quarter.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash and cash equivalents were $237 million compared with $241.2 million as of Jun 30, 2023. The downtick was caused primarily by the impact of share repurchase activity
The company generated $154.9 million in cash from operations compared with $113.6 million reported in the year-ago quarter. Non-GAAP free cash flow was $153 million in the fiscal third quarter compared with $111.5 million in the prior-year quarter.
Aspen repurchased 277,913 shares for $56.9 million in the fourth quarter of fiscal 2024.
As of Jun 30, 2024, the company executed its fiscal 2024 share buyback authorization, repurchasing 1,520,993 shares in total in fiscal 2024. Aspen’s board of directors has sanctioned a new share repurchase program, allowing the company to buy back up to $100 million worth of its stock during fiscal 2025.
Fiscal 2025 Guidance
The guidance for fiscal 2025 highlights the impact of cautious customer spending in the face of an uncertain economic and geopolitical environment. However, the company expects continued strength in the utilities and energy sector, but a muted growth in chemicals and a more moderate sustainability CapEx environment.
For fiscal 2025, Aspen expects revenues to be at least $1.19 billion.
Non-GAAP net income is now anticipated to be at least $7.47 per share.
Management projects ACV growth to be at least 9% from a year ago and total bookings to be at least $1.17 billion.
Non-GAAP operating income is now estimated to be at least $514 million. Non-GAAP total expenses are expected to be nearly $675 million.
Free cash flow is projected to be at least $340 million.
Zacks Rank
Aspen currently has a Zacks Rank #3 (Hold). In the past year, the stock has lost 3.9% against the sub-industry’s growth of 19%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the broader technology space are Badger Meter, Inc. (BMI - Free Report) , SAP SE (SAP - Free Report) and Arista Networks, Inc. (ANET - Free Report) . SAP presently carries a Zacks Rank #2 (Buy), whereas BMI & ANET both sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 4.37% in the past 60 days to $4.06. The company recently reported results for second-quarter 2024, wherein EPS of $1.12 topped the Zacks Consensus Estimate by 14.3%. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 4.0% in the past 60 days to $8.24. The company recently reported results for second-quarter 2024, wherein EPS of $2.10 beat the Zacks Consensus Estimate by 16 cents. Quarterly revenues were $1.69 billion, up 15.8% from $1.46 billion in the year-ago quarter and surpassed the consensus mark by $1.64 billion.
The Zacks Consensus Estimate for SAP’s 2024 EPS has increased 4.2% in the past 60 days to $4.75. The company recently reported results for second-quarter of 2024 wherein non-IFRS earnings came in at €1.10 ($1.18) per share, climbing 59% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.01. Total revenues on a non-IFRS basis of €8.288 billion ($8,921.3 million), rose 10% year over year both at nominal and constant currencies (cc) basis. The Zacks Consensus Estimate was pegged at $8,864.7 million.