Product design software company PTC (NASDAQ: PTC) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.
PTC beat analysts’ revenue expectations last quarter, reporting revenues of $774.3 million, up 21.7% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ billings estimates but a significant miss of analysts’ annual recurring revenue estimates.
Is PTC a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PTC’s revenue to decline 5.6% year on year, a reversal from the 24.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. PTC rarely misses Wall Street’s revenue estimates.
Looking at PTC’s peers in the vertical software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Cadence Design Systems delivered year-on-year revenue growth of 24.2%, beating analysts’ expectations by 0.5%, and Agilysys reported revenues up 14.3%, topping estimates by 1.7%.
Read our full analysis of Cadence Design Systems’s results here and Agilysys’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 6.9% on average over the last month. PTC is up 10% during the same time and is heading into earnings with an average analyst price target of $174.10 (compared to the current share price of $125.28).
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