What Happened:
Shares of engineering simulation software provider Ansys (NASDAQ:ANSS) fell 8.46% in the morning session after the company reported strong first-quarter results that exceeded analysts' revenue, operating income, free cash flow, and earnings per share (EPS) expectations. However, annual contract value (ACV) missed. In addition, revenue and EPS guidance for the next quarter and full year fell short of Consensus estimates. Overall, it was a weaker quarter for the company.
What is the market telling us:
ANSYS's shares are somewhat volatile and over the last year have had 6 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
ANSYS is up 28.8% since the beginning of the year, and at $307.90 per share it is trading close to its 52-week high of $332.80 from March 2023. Investors who bought $1,000 worth of ANSYS's shares 5 years ago would now be looking at an investment worth $1, 870.
Is now the time to buy ANSYS? Access our full analysis of the earnings results here, it's free.