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PTC Inc. (PTC) Up 0.7% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for PTC Inc. (PTC - Free Report) . Shares have added about 0.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PTC Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
PTC's Q3 Earnings Meet Estimates
PTC reported third-quarter fiscal 2024 non-GAAP earnings per share (EPS) of 98 cents, down 1% on a year-over-year basis. The figure came in line with the Zacks Consensus Estimate.
Revenues were $519 million, declining 4% year over year (down 3% at constant currency or cc). The top line missed the Zacks Consensus Estimate by 2.7%. A challenging selling environment resulted in the year-over-year decline.
Top Line in Detail
Recurring revenues of $481.6 million fell 3.4% year over year. Perpetual licenses decreased 14.6% to $7.1 million.
Revenues by License, Support and Services
License revenues (28.7% of total revenues) were $149.1 million, down 22.7% from the year-ago quarter’s figure.
Support and cloud services revenues (65.5%) of $339.5 million increased 8.2% year over year.
Professional services revenues (5.8%) were $30 million, down 16% year over year.
Revenues by Product Group
In the fiscal third quarter, PLM revenues were $330 million, falling 6% year over year. CAD revenues were $189 million, down 2%.
ARR Performance
Annual Run Rate (ARR) were $2,126 million, increasing 10% year over year. ARR was up 12% on a constant currency basis. The uptick was driven by strong performance across all divisions and regions.
In the fiscal third quarter, PLM and CAD ARR were $1,302 million and $824 million, rising 12% and 8% year over year, respectively.
Operating Details
Non-GAAP gross margin decreased 10 basis points (bps) on a year-over-year basis to 81.4%.
Total operating expenses decreased 1.8% to $310.9 million.
Operating income on a non-GAAP basis fell 11.1% year over year to $164.4 million.
Operating margin on a non-GAAP basis declined 240 bps to 31.7%.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash, cash equivalents and marketable securities were $248 million compared with $249 million as of Mar 31, 2024.
Total debt, net of deferred issuance costs, was $1811.2 million as of Jun 30, 2024, compared with $2005.7 million as of Mar 31, 2024.
Cash provided by operating activities was $214 million compared with the prior-year quarter’s figure of $169 million.
The free cash flow was $212 million compared with $164 million in the year-ago quarter.
Fiscal 2024 Guidance
For fiscal 2024, ARR is expected to be in the range of $2.2-$2.22 billion, which indicates a rise of 11-12% year over year at cc.
Revenues for fiscal 2024 are projected to be in the band of $2.27-$2.32 billion, indicating a rise of 8-11% year over year.
For fiscal 2024, cash from operations is projected to be $740 million, indicating a rise of 21% on a year-over-year basis. The free cash flow is forecasted to be $725 million, suggesting a 23% increase year over year, unchanged from the previous guidance.
For the fiscal fourth quarter, PTC expects ARR between $2.20 billion and $2.22 billion. Cash from operations is projected to be $88 million, and free cash flow is forecasted to be $83 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, PTC Inc. has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, PTC Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
PTC Inc. is part of the Zacks Computer - Software industry. Over the past month, SAP (SAP - Free Report) , a stock from the same industry, has gained 6.4%. The company reported its results for the quarter ended June 2024 more than a month ago.
SAP reported revenues of $8.92 billion in the last reported quarter, representing a year-over-year change of +9%. EPS of $1.18 for the same period compares with $1.14 a year ago.
For the current quarter, SAP is expected to post earnings of $1.31 per share, indicating a change of -17.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
SAP has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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PTC Inc. (PTC) Up 0.7% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for PTC Inc. (PTC - Free Report) . Shares have added about 0.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PTC Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
PTC's Q3 Earnings Meet Estimates
PTC reported third-quarter fiscal 2024 non-GAAP earnings per share (EPS) of 98 cents, down 1% on a year-over-year basis. The figure came in line with the Zacks Consensus Estimate.
Revenues were $519 million, declining 4% year over year (down 3% at constant currency or cc). The top line missed the Zacks Consensus Estimate by 2.7%. A challenging selling environment resulted in the year-over-year decline.
Top Line in Detail
Recurring revenues of $481.6 million fell 3.4% year over year. Perpetual licenses decreased 14.6% to $7.1 million.
Revenues by License, Support and Services
License revenues (28.7% of total revenues) were $149.1 million, down 22.7% from the year-ago quarter’s figure.
Support and cloud services revenues (65.5%) of $339.5 million increased 8.2% year over year.
Professional services revenues (5.8%) were $30 million, down 16% year over year.
Revenues by Product Group
In the fiscal third quarter, PLM revenues were $330 million, falling 6% year over year. CAD revenues were $189 million, down 2%.
ARR Performance
Annual Run Rate (ARR) were $2,126 million, increasing 10% year over year. ARR was up 12% on a constant currency basis. The uptick was driven by strong performance across all divisions and regions.
In the fiscal third quarter, PLM and CAD ARR were $1,302 million and $824 million, rising 12% and 8% year over year, respectively.
Operating Details
Non-GAAP gross margin decreased 10 basis points (bps) on a year-over-year basis to 81.4%.
Total operating expenses decreased 1.8% to $310.9 million.
Operating income on a non-GAAP basis fell 11.1% year over year to $164.4 million.
Operating margin on a non-GAAP basis declined 240 bps to 31.7%.
Balance Sheet & Cash Flow
As of Jun 30, 2024, cash, cash equivalents and marketable securities were $248 million compared with $249 million as of Mar 31, 2024.
Total debt, net of deferred issuance costs, was $1811.2 million as of Jun 30, 2024, compared with $2005.7 million as of Mar 31, 2024.
Cash provided by operating activities was $214 million compared with the prior-year quarter’s figure of $169 million.
The free cash flow was $212 million compared with $164 million in the year-ago quarter.
Fiscal 2024 Guidance
For fiscal 2024, ARR is expected to be in the range of $2.2-$2.22 billion, which indicates a rise of 11-12% year over year at cc.
Revenues for fiscal 2024 are projected to be in the band of $2.27-$2.32 billion, indicating a rise of 8-11% year over year.
For fiscal 2024, cash from operations is projected to be $740 million, indicating a rise of 21% on a year-over-year basis. The free cash flow is forecasted to be $725 million, suggesting a 23% increase year over year, unchanged from the previous guidance.
For the fiscal fourth quarter, PTC expects ARR between $2.20 billion and $2.22 billion. Cash from operations is projected to be $88 million, and free cash flow is forecasted to be $83 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
Currently, PTC Inc. has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, PTC Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
PTC Inc. is part of the Zacks Computer - Software industry. Over the past month, SAP (SAP - Free Report) , a stock from the same industry, has gained 6.4%. The company reported its results for the quarter ended June 2024 more than a month ago.
SAP reported revenues of $8.92 billion in the last reported quarter, representing a year-over-year change of +9%. EPS of $1.18 for the same period compares with $1.14 a year ago.
For the current quarter, SAP is expected to post earnings of $1.31 per share, indicating a change of -17.1% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
SAP has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.