Engineering simulation software provider Ansys (NASDAQ:ANSS) will be reporting results tomorrow after the bell. Here's what you need to know.
Last quarter ANSYS reported revenues of $458.8 million, down 2.9% year on year, missing analyst expectations by 1.7%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter.
Is ANSYS buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting ANSYS's revenue to grow 14.7% year on year to $795.9 million, improving on the 5.9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.70 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.2%.
Looking at ANSYS's peers in the design software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Procore Technologies delivered top-line growth of 28.7% year on year, beating analyst estimates by 4.7% and PTC reported revenues up 18.1% year on year, exceeding estimates by 2.3%. Procore Technologies traded up 6.4% on the results, and PTC was down 0.7%.
Read our full analysis of Procore Technologies's results here and PTC's results here.
There has been positive sentiment among investors in the design software segment, with the stocks up on average 2.9% over the last month. ANSYS is down 3.2% during the same time, and is heading into the earnings with analyst price target of $347.4, compared to share price of $330.
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