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ANSYS (ANSS) to Report Q1 Earnings: What's in the Cards?
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ANSYS Inc (ANSS - Free Report) is set to release first-quarter 2018 earnings on May 2.
Notably, the company has a positive record of earnings beats in the trailing four quarters, with an average surprise of 6.47%. The company delivered a positive earnings surprise of 2.88% in the last reported quarter.
Non-GAAP earnings of $1.07 per share increased 9.2% year over year. Moreover, revenues increased 12.1% (9.1% in constant currency) from the year-ago quarter to $303.4 million, surpassing the Zacks Consensus Estimate of $291 million.
For first-quarter 2018, ANSYS expects non-GAAP earnings in the range of 90 cents to $1.05 per share. Net revenues are anticipated in the range of $261-$281 million.
The Zacks Consensus Estimate for earnings shows an increase of 19.1% year over year to $1.06 per share for the to-be reported quarter. The consensus estimate for revenues is currently pegged at $275.8 million, up 8.8% year over year.
Notably, the stock has returned 10.3% year-to-date, better than the 9.7% rally of the industry.
Let’s see how things are shaping up for this announcement.
Acquisitions & Partnerships Expanding Portfolio
ANSYS has partnered with major CAD vendors — Autodesk, PTC and Siemens to provide data transfer services as well as build geometry modeling software solutions. The company is also increasing its reach in the cloud computing market on the back of its partnership with Amazon Web Services (“AWS”).
Increasing demand for simulation particularly from industries like energy bodes well for the company. ANSYS collaborations with companies like NVIDIA, Ferrari, Taiwan Semiconductor, Synopsys and Grundfos have helped it to develop a varied range of products ranging from automotive reliability solutions, live simulation software to high performance steering wheels.
These collaborations are not only enabling ANSYS to bring innovative solutions to the market but are also aiding it to enhance foothold in the competitive simulations market.
Moreover, the company’s aggressive acquisition strategy has played a pivotal part in developing the company’s business in the past few years. With the help of strategic acquisitions such as SpaceClaim, Reaction Design and Evolutionary Engineering, ANSYS is now able to bring innovative products in the fields of 3D modeling, chemistry solutions and cloud computing respectively.
Further, the acquisition of 3DSIM, a leading additive manufacturing simulation technology provider, will help ANSYS to foray into 3D metal printing and access the industry's only complete additive manufacturing simulation workflow. However, this buyout will not have any material impact on first-quarter results.
During the quarter, ANSYS also bought France-based OPTIS. With the acquisition, OPTIS’ feature-rich virtual reality (VR) platform will complement ANSYS offerings to help automotive manufacturers supply safer driverless vehicles. Safer navigation will be ensured by development of futuristic camera, lidar and radar.
However, the first quarter is anticipated to be the quarter of slowest growth for revenues, primarily due to lack of large deals that are scheduled for the second half of the year. Moreover, margin is expected to remain under pressure as ANSYS continues to invest on product development.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ANSYS has a Zacks Rank #3 and Earnings ESP of 0.00%. Consequently, the company is unlikely to deliver a positive surprise this quarter.
Stocks to Consider
Here are some stocks that you may want to consider as our model shows that they have the right combination of elements to deliver an earnings beat in their upcoming release.
Arrow Electronics (ARW - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of 2.
FireEye has an Earnings ESP of +6.67% and a Zacks Rank of 3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
ANSYS (ANSS) to Report Q1 Earnings: What's in the Cards?
ANSYS Inc (ANSS - Free Report) is set to release first-quarter 2018 earnings on May 2.
Notably, the company has a positive record of earnings beats in the trailing four quarters, with an average surprise of 6.47%. The company delivered a positive earnings surprise of 2.88% in the last reported quarter.
Non-GAAP earnings of $1.07 per share increased 9.2% year over year. Moreover, revenues increased 12.1% (9.1% in constant currency) from the year-ago quarter to $303.4 million, surpassing the Zacks Consensus Estimate of $291 million.
For first-quarter 2018, ANSYS expects non-GAAP earnings in the range of 90 cents to $1.05 per share. Net revenues are anticipated in the range of $261-$281 million.
ANSYS, Inc. Price and EPS Surprise
ANSYS, Inc. Price and EPS Surprise | ANSYS, Inc. Quote
The Zacks Consensus Estimate for earnings shows an increase of 19.1% year over year to $1.06 per share for the to-be reported quarter. The consensus estimate for revenues is currently pegged at $275.8 million, up 8.8% year over year.
Notably, the stock has returned 10.3% year-to-date, better than the 9.7% rally of the industry.
Let’s see how things are shaping up for this announcement.
Acquisitions & Partnerships Expanding Portfolio
ANSYS has partnered with major CAD vendors — Autodesk, PTC and Siemens to provide data transfer services as well as build geometry modeling software solutions. The company is also increasing its reach in the cloud computing market on the back of its partnership with Amazon Web Services (“AWS”).
Increasing demand for simulation particularly from industries like energy bodes well for the company. ANSYS collaborations with companies like NVIDIA, Ferrari, Taiwan Semiconductor, Synopsys and Grundfos have helped it to develop a varied range of products ranging from automotive reliability solutions, live simulation software to high performance steering wheels.
These collaborations are not only enabling ANSYS to bring innovative solutions to the market but are also aiding it to enhance foothold in the competitive simulations market.
Moreover, the company’s aggressive acquisition strategy has played a pivotal part in developing the company’s business in the past few years. With the help of strategic acquisitions such as SpaceClaim, Reaction Design and Evolutionary Engineering, ANSYS is now able to bring innovative products in the fields of 3D modeling, chemistry solutions and cloud computing respectively.
Further, the acquisition of 3DSIM, a leading additive manufacturing simulation technology provider, will help ANSYS to foray into 3D metal printing and access the industry's only complete additive manufacturing simulation workflow. However, this buyout will not have any material impact on first-quarter results.
During the quarter, ANSYS also bought France-based OPTIS. With the acquisition, OPTIS’ feature-rich virtual reality (VR) platform will complement ANSYS offerings to help automotive manufacturers supply safer driverless vehicles. Safer navigation will be ensured by development of futuristic camera, lidar and radar.
However, the first quarter is anticipated to be the quarter of slowest growth for revenues, primarily due to lack of large deals that are scheduled for the second half of the year. Moreover, margin is expected to remain under pressure as ANSYS continues to invest on product development.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ANSYS has a Zacks Rank #3 and Earnings ESP of 0.00%. Consequently, the company is unlikely to deliver a positive surprise this quarter.
Stocks to Consider
Here are some stocks that you may want to consider as our model shows that they have the right combination of elements to deliver an earnings beat in their upcoming release.
Fortinet (FTNT - Free Report) has an Earnings ESP of +2.70% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arrow Electronics (ARW - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of 2.
FireEye has an Earnings ESP of +6.67% and a Zacks Rank of 3.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>