PTC Earnings: What To Look For From PTC

Petr Huřťák /
2024/04/30 3:07 am EDT

Engineering and design software provider PTC (NASDAQ:PTC) will be reporting earnings tomorrow after market close. Here's what you need to know.

PTC beat analysts' revenue expectations by 2.3% last quarter, reporting revenues of $550.2 million, up 18.1% year on year. It was a decent quarter for the company, with a solid beat of analysts' ARR (annual recurring revenue) estimates.

Is PTC a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting PTC's revenue to grow 6.4% year on year to $577 million, in line with the 7.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.22 per share.

PTC Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. PTC has missed Wall Street's revenue estimates twice over the last two years.

Looking at PTC's peers in the vertical software segment, only Cadence has reported results so far. It met analysts' revenue estimates, posting year-on-year sales declines of 1.2%. The stock was down 1.2% on the results.

Read our full analysis of Cadence's earnings results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share prices down 3.5% on average over the last month. PTC is down 4% during the same time and is heading into earnings with an average analyst price target of $201 (compared to the current share price of $180.68).

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