Yahoo Finance PTC Set to Report Q2 Earnings: Here's What You Should Know
PTC Inc PTC is slated to report second-quarter fiscal 2023 results on Apr 26.
The Zacks Consensus Estimate for revenues is pegged at $538.4 million, suggesting growth of 6.6% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $1.07 per share, indicating a year-over-year decrease of 23%.
The company has a trailing four-quarter earnings surprise of 6.6%, on average.
PTC reported first-quarter fiscal 2023 non-GAAP earnings of 99 cents per share, up 4% on a year-over-year basis. However, the figure lagged the Zacks Consensus Estimate by 2%. Revenues were $466 million, up 2% year over year (up 9% at constant currency or cc). The top line beat the consensus estimate by 0.4%.
PTC Inc. Price and EPS Surprise
PTC Inc. price-eps-surprise | PTC Inc. Quote
Factors to Consider
Strong demand for products, especially digital transformation and software-as-a-service or SaaS, across all segments and regions is expected to have driven the revenue performance in the to-be-reported quarter. A solid uptick in demand for Creo, Windchill platforms and ThingWorx DPM is likely to have acted as a tailwind
Strength in the industrial Internet of Things solutions, and solid demand for product lifecycle management (PLM) and computer-aided design (CAD) offerings are expected to have contributed to PTC’s fiscal second-quarter top line.
Subscription-centric model and disciplined operational management are expected to have favored top-line growth in the quarter. The company has been slowing down hiring as well as backfills.
Synergies from the recent acquisitions of ServiceMax and Codebeamer are likely to have aided the company's performance. In January 2023, PTC completed the acquisition of cloud-based field service management (FSM) software company – ServiceMax for $1.46 billion. The company expects the integration of ServiceMax to strengthen its closed loop PLM solutions by providing enterprise asset management and FSM companies with monitoring and servicing product record after the product moves into customer use.
For the fiscal second quarter, PTC expects annualized recurring revenues or ARR to be between $1.790 billion and $1.810 billion. Cash from operations is projected to be $205 million and free cash flow is forecast to be $200 million.
However, unfavorable forex movement, inflation and challenging global macroeconomic environment are expected to have weighed on the company’s performance. Also, increasing research and development costs to fend off competition are likely to have acted as headwinds.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for PTC this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
PTC has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Meta Platforms META has an Earnings ESP of +11.23% and currently flaunts a Zacks Rank of 1. META is set to announce quarterly figures on Apr 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Meta’s to-be-reported quarter’s earnings and revenues is pegged at $1.96 per share and $27.49 billion, respectively. Shares of META are up 13.8% in the past year.
Spotify Technology SPOT has an Earnings ESP of +24.28% and presently carries a Zacks Rank #2. SPOT is slated to release quarterly numbers on Apr 25.
The Zacks Consensus Estimate is pegged at a loss of $1.04 per share and $3.37 billion for revenues, respectively. Shares of SPOT are up 19.3% in the past year.
American Airlines Group AAL has an Earnings ESP of +85.71% and currently has a Zacks Rank #2. AAL is scheduled to report quarterly earnings on Apr 27.
The Zacks Consensus Estimate for AAL’s to-be-reported quarter’s earnings and revenues is pegged at 3 cents per share and $12.25 billion, respectively. Shares of AAL are down 32.9% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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American Airlines Group Inc. (AAL) : Free Stock Analysis Report
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Meta Platforms, Inc. (META) : Free Stock Analysis Report
