ANSYS (ANSS - Free Report) reported fourth-quarter 2021 non-GAAP earnings of $2.81 per share, which beat the Zacks Consensus Estimate by 4.9%, However, the bottom line declined 5.1% year over year.
Non-GAAP revenues of $661.4 million surpassed the Zacks Consensus Estimate by 4%. The top line increased 5.4% (up 8% at constant currency or cc) from the year-ago quarter’s levels.
Strength in product portfolio and improving performance in most of the verticals boosted the top line.
Deferred revenues and backlog were $1.258 billion, up 30% on a year-over-year basis.
For 2021, ANSYS reported non-GAAP earnings of $7.37 per share compared with $6.70 reported in 2020. Non-GAAP revenues of $1.932 million. The top line increased 13.9% (up 13.7% at constant currency or cc) from the year-ago quarter’s levels.
Following the announcement, shares of ANSYS are trading down 2.9% in the premarket trading on Feb 24. In the past year, shares of ANSYS have declined 12.4% compared with the industry’s return of 12.5%.
Quarter in Details
Lease licenses revenues (45.7% of non-GAAP revenues) increased 18.4% at cc to $302.4 million. Perpetual licenses revenues (14.5%) declined 17.5% year over year at cc to $95.7 million.
Maintenance revenues (37.2%) increased 9.5% at cc to $245.8 million. Service revenues (2.6%) increased 7% year over year to $17.5 million.
Direct and indirect channels contributed 80.7% and 19.3%, respectively, to non-GAAP revenues.
Annual contract value or ACV increased 13.5% year over year (up 16.4% at cc) to $755.4 million.
On a geographic basis, non-GAAP revenues from the Americas, EMEA (comprising Germany, the U.K. and other EMEA) and the Asia-Pacific (Japan and Other Asia-Pacific) contributed 46.8%, 31.6% and 21.6% to non-GAAP revenues, respectively.
Non-GAAP revenues from the Americas were down 3.7% to $309.6 million at cc. Revenues from EMEA increased 18.1% to $209.2 million. Revenues from Asia-Pacific increased 24% to $142.6 million.
Strength in the aerospace and defense, high-tech, automotive sectors led to increases in overall revenues.
Operating Details
Non-GAAP gross margin expanded 70 basis points (bps) on a year-over-year basis to 92.3%.
Total operating expenses increased 17.4% year over year to $347.8 million due to higher research and development as well as selling, general and administrative expenses.
Non-GAAP operating margin contracted 480 bps on a year-over-year basis to 46.8%.
Balance Sheet & Cash Flow
As of Dec 31, 2021, cash and short-term investments amounted to $668 million (the United States contributed 55%) compared with $1.081 billion (the United States contributed 69%) as of Sep 30, 2021.
As of Dec 31, 2021, the company’s long-term debt stood at $753.6 million.
The company generated cash from operations of $101.7 million in the fourth quarter compared with $157.8 million in the prior quarter.
The company repurchased 250,000 shares worth $98.7 million in the fourth quarter. The company repurchased 346,800 shares worth $134.7 million in 2021. As of Dec 31, 2021, it had 2.5 million shares remaining under the share buyback program.
Guidance
For first-quarter 2022, ANSYS expects non-GAAP earnings in the range of $1.05-$1.22. The Zacks Consensus Estimate is currently pegged at $1.22 per share.
Non-GAAP revenues are anticipated between $395 million and $420 million. The Zacks Consensus Estimate is pegged at $401.7 million.
Management projects non-GAAP operating margin in the range of 29.1-31.9%.
For 2022, ANSYS now expects non-GAAP revenues of $2.04-$2.11 billion. The Zacks Consensus Estimate is pegged at $2.08 billion.
Management expects a non-GAAP operating margin in the range of 41-42% for 2022.
Non-GAAP earnings are now envisioned in the range of $7.64-$8.10 per share. The Zacks Consensus Estimate for earnings is pegged at $7.98 per share.
ACV is now anticipated between $1.99 billion and $2.05 billion while operating cash flow is projected between $580 million and $620 million for 2022.
Zacks Rank & Stocks to Consider
ANSYS currently carries a Zacks Rank #3 (Hold).
Some other top-ranked stocks worth considering from the broader technology sector include Broadcom (AVGO - Free Report) , Apple (AAPL - Free Report) and Texas Instruments (TXN - Free Report) . Apple sports a Zacks Rank #1 (Strong Buy), while Broadcom and Texas Instruments carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $33.15 per share. The long-term earnings growth rate of the company is pegged at 14.5%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 1.41%. Shares of Broadcom have increased 21% in the past year.
The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.15 per share. The long-term earnings growth rate of the company is pegged at 12.5%.
Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 20.3%. Shares of AAPL have rallied 28.4% in the past year.
The Zacks Consensus Estimate for Texas Instruments for 2022 earnings is pegged at $9.09 per share. The long-term earnings growth rate of the company is pegged at 9.3%.
Texas Instruments’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.4%. Shares of TXN have declined 5.4% in the past year.
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ANSYS (ANSS - Free Report) reported fourth-quarter 2021 non-GAAP earnings of $2.81 per share, which beat the Zacks Consensus Estimate by 4.9%, However, the bottom line declined 5.1% year over year.
Non-GAAP revenues of $661.4 million surpassed the Zacks Consensus Estimate by 4%. The top line increased 5.4% (up 8% at constant currency or cc) from the year-ago quarter’s levels.
Strength in product portfolio and improving performance in most of the verticals boosted the top line.
Deferred revenues and backlog were $1.258 billion, up 30% on a year-over-year basis.
For 2021, ANSYS reported non-GAAP earnings of $7.37 per share compared with $6.70 reported in 2020. Non-GAAP revenues of $1.932 million. The top line increased 13.9% (up 13.7% at constant currency or cc) from the year-ago quarter’s levels.
Following the announcement, shares of ANSYS are trading down 2.9% in the premarket trading on Feb 24. In the past year, shares of ANSYS have declined 12.4% compared with the industry’s return of 12.5%.
Quarter in Details
Lease licenses revenues (45.7% of non-GAAP revenues) increased 18.4% at cc to $302.4 million. Perpetual licenses revenues (14.5%) declined 17.5% year over year at cc to $95.7 million.
Maintenance revenues (37.2%) increased 9.5% at cc to $245.8 million. Service revenues (2.6%) increased 7% year over year to $17.5 million.
Direct and indirect channels contributed 80.7% and 19.3%, respectively, to non-GAAP revenues.
Annual contract value or ACV increased 13.5% year over year (up 16.4% at cc) to $755.4 million.
On a geographic basis, non-GAAP revenues from the Americas, EMEA (comprising Germany, the U.K. and other EMEA) and the Asia-Pacific (Japan and Other Asia-Pacific) contributed 46.8%, 31.6% and 21.6% to non-GAAP revenues, respectively.
Non-GAAP revenues from the Americas were down 3.7% to $309.6 million at cc. Revenues from EMEA increased 18.1% to $209.2 million. Revenues from Asia-Pacific increased 24% to $142.6 million.
Strength in the aerospace and defense, high-tech, automotive sectors led to increases in overall revenues.
Operating Details
Non-GAAP gross margin expanded 70 basis points (bps) on a year-over-year basis to 92.3%.
Total operating expenses increased 17.4% year over year to $347.8 million due to higher research and development as well as selling, general and administrative expenses.
Non-GAAP operating margin contracted 480 bps on a year-over-year basis to 46.8%.
Balance Sheet & Cash Flow
As of Dec 31, 2021, cash and short-term investments amounted to $668 million (the United States contributed 55%) compared with $1.081 billion (the United States contributed 69%) as of Sep 30, 2021.
As of Dec 31, 2021, the company’s long-term debt stood at $753.6 million.
The company generated cash from operations of $101.7 million in the fourth quarter compared with $157.8 million in the prior quarter.
The company repurchased 250,000 shares worth $98.7 million in the fourth quarter. The company repurchased 346,800 shares worth $134.7 million in 2021. As of Dec 31, 2021, it had 2.5 million shares remaining under the share buyback program.
Guidance
For first-quarter 2022, ANSYS expects non-GAAP earnings in the range of $1.05-$1.22. The Zacks Consensus Estimate is currently pegged at $1.22 per share.
Non-GAAP revenues are anticipated between $395 million and $420 million. The Zacks Consensus Estimate is pegged at $401.7 million.
Management projects non-GAAP operating margin in the range of 29.1-31.9%.
For 2022, ANSYS now expects non-GAAP revenues of $2.04-$2.11 billion. The Zacks Consensus Estimate is pegged at $2.08 billion.
Management expects a non-GAAP operating margin in the range of 41-42% for 2022.
Non-GAAP earnings are now envisioned in the range of $7.64-$8.10 per share. The Zacks Consensus Estimate for earnings is pegged at $7.98 per share.
ACV is now anticipated between $1.99 billion and $2.05 billion while operating cash flow is projected between $580 million and $620 million for 2022.
Zacks Rank & Stocks to Consider
ANSYS currently carries a Zacks Rank #3 (Hold).
Some other top-ranked stocks worth considering from the broader technology sector include Broadcom (AVGO - Free Report) , Apple (AAPL - Free Report) and Texas Instruments (TXN - Free Report) . Apple sports a Zacks Rank #1 (Strong Buy), while Broadcom and Texas Instruments carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $33.15 per share. The long-term earnings growth rate of the company is pegged at 14.5%.
Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, the average surprise being 1.41%. Shares of Broadcom have increased 21% in the past year.
The Zacks Consensus Estimate for Apple’s fiscal 2022 earnings is pegged at $6.15 per share. The long-term earnings growth rate of the company is pegged at 12.5%.
Apple’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 20.3%. Shares of AAPL have rallied 28.4% in the past year.
The Zacks Consensus Estimate for Texas Instruments for 2022 earnings is pegged at $9.09 per share. The long-term earnings growth rate of the company is pegged at 9.3%.
Texas Instruments’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.4%. Shares of TXN have declined 5.4% in the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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