Financial News
ANSYS (ANSS) Reports Q3: Everything You Need To Know Ahead Of Earnings
Engineering simulation software provider Ansys (NASDAQ:ANSS) will be reporting results tomorrow after the bell. Here’s what to look for.
ANSYS beat analysts’ revenue expectations by 6.9% last quarter, reporting revenues of $594.1 million, up 19.6% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ average contract value estimates.
Is ANSYS a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting ANSYS’s revenue to grow 14.2% year on year to $523.9 million, a reversal from the 2.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.73 per share.
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. ANSYS has missed Wall Street’s revenue estimates twice over the last two years.
Looking at ANSYS’s peers in the vertical software segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Cadence delivered year-on-year revenue growth of 18.8%, beating analysts’ expectations by 2.9%, and Procore reported revenues up 19.4%, topping estimates by 2.9%. Cadence’s stock price was unchanged after the results, and Procore’s price followed a similar reaction.
Read our full analysis of Cadence’s results here and Procore’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 5.8% on average over the last month. ANSYS is up 3.7% during the same time and is heading into earnings with an average analyst price target of $348 (compared to the current share price of $324.56).
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