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PTC Earnings: What To Look For From PTC

StockStory - Tue Oct 31, 2023

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Engineering and design software provider PTC (NASDAQ:PTC) will be announcing earnings results tomorrow after market hours. Here's what to expect.

Last quarter PTC reported revenues of $542.3 million, up 17.3% year on year, beating analyst revenue expectations by 3.41%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and 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 10.1% year on year to $559.3 million, improving on the 5.67% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.14 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 twice over the last two years.

Looking at PTC's peers in the vertical software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Cadence delivered top-line growth of 13.4% year on year, beating analyst estimates by 1.82%, and Agilysys reported revenues up 22.8% year on year, exceeding estimates by 3.13%. Cadence traded down 0.92% on the results, Agilysys was up 21.7%.

Read our full analysis of Cadence's results here and Agilysys's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022, and while some of the vertical software stocks have fared somewhat better, they have not been spared, with share price declining 8.09% over the last month. PTC is down 1.02% during the same time, and is heading into the earnings with analyst price target of $162.1, compared to share price of $139.4.

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.

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