Engineering and design software provider PTC (NASDAQ:PTC) will be reporting results tomorrow afternoon. Here’s what to look for.

PTC missed analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $518.6 million, down 4.4% year on year. It was a mixed quarter for the company, with optimistic earnings guidance for the next quarter but a miss of analysts’ billings estimates.

Is PTC a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting PTC’s revenue to grow 13.5% year on year to $620.5 million, improving from the 7.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.46 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. PTC has missed Wall Street’s revenue estimates twice over the last two years.

Looking at PTC’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 resultsand 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. PTC is up 5% during the same time and is heading into earnings with an average analyst price target of $198.61 (compared to the current share price of $186.23).

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