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Why Is Ansys (ANSS) Down 1.8% Since Last Earnings Report?
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It has been about a month since the last earnings report for Ansys (ANSS - Free Report) . Shares have lost about 1.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ansys due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
ANSYS Q4 Earnings and Revenues Top Estimates
ANSYS 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.
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. Non-GAAP revenues are anticipated between $395 million and $420 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. 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -15.18% due to these changes.
VGM Scores
At this time, Ansys has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ansys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Ansys (ANSS) Down 1.8% Since Last Earnings Report?
It has been about a month since the last earnings report for Ansys (ANSS - Free Report) . Shares have lost about 1.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Ansys due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
ANSYS Q4 Earnings and Revenues Top Estimates
ANSYS 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.
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. Non-GAAP revenues are anticipated between $395 million and $420 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. 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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -15.18% due to these changes.
VGM Scores
At this time, Ansys has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Ansys has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.