PTC (PTC) Q1 Earnings: What To Expect

Kayode Omotosho /
2024/01/30 2:00 am EST

Engineering and design software provider PTC (NASDAQ:PTC) will be reporting results tomorrow after the bell. Here's what to expect.

Last quarter PTC reported revenues of $546.6 million, up 7.6% year on year, missing analyst expectations by 2.3%. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations.

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

This quarter analysts are expecting PTC's revenue to grow 15.5% year on year to $538 million, improving on the 1.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.97 per share.

PTC Total Revenue

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 missed Wall St's revenue estimates three times over the last two years.

Looking at PTC's peers in the vertical software segment, only Agilysys has so far reported results, delivering top-line growth of 21.3% year on year, and beating analyst estimates by 0.8%. The stock traded flat on the results.

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

There has been positive sentiment among investors in the vertical software segment, with the stocks up on average 6.1% over the last month. PTC is up 9.6% during the same time, and is heading into the earnings with analyst price target of $185.6, compared to share price of $184.8.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

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The author has no position in any of the stocks mentioned.