We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ANSYS (ANSS) Q2 Earnings Beat Estimates, Revenues Up Y/Y
Read MoreHide Full Article
ANSYS Inc. (ANSS - Free Report) reported second-quarter 2022 earnings of $1.77 per share, beating the Zacks Consensus Estimate by 9.94%. The bottom line decreased 4.3% year over year.
Non-GAAP revenues of $475.9 million surpassed the Zacks Consensus Estimate by 1.97%. The top line increased 5% (up 12% at constant currency or cc) from the year-ago quarter.
High-performance computing, 5G, and sustainability boosted high-tech and semiconductor industry growth in the Europe, Middle East, and Africa (EMEA) and Asia-Pacific regions. The company saw double-digit growth for its electrification and advanced driver assistance systems business segment in the Americas and the Asia-Pacific region. Deferred revenues and backlogs were $1.179 billion, up 27.2% year over year.
Following the announcement, shares of the company were up 2.1% in the pre-market trading on Aug 4, 2022. In the past year, shares of ANSYS have lost 24.3% compared with the industry’s decline of 12.5%.
Subscription lease revenues (28.4% of non-GAAP revenues) increased 12.4% at cc to $135 million. Perpetual licenses’ revenues (15.5%) decreased 9.3% year over year at cc to $73.9 million.
Maintenance revenues (52.5%) increased 17.7% at cc to $249.7 million. Service revenues (3.6%) rose 33.1% year over year to $17.2 million.
Direct and indirect channels contributed 73.7% and 26.3%, respectively, to non-GAAP revenues.
Annual contract value or ACV increased 6.9% year over year (up 13.2% at cc) to $460.3 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 41.4%, 25.9% and 32.7% to non-GAAP revenues, respectively.
Non-GAAP revenues from the Americas were down 10.9% to $196.8 million at cc. Revenues from EMEA increased 29.2% to $123.4 million at cc. Revenues from the Asia-Pacific increased 36.2% to $155.6 million at cc.
Strength in the industrial and energy industries, high-tech, and automotive sectors increased overall revenues.
Operating Details
The non-GAAP gross margin expanded 100 basis points (bps) on a year-over-year basis to 91%.
Total operating expenses increased 6.6% year over year to $283.3 million due to higher research and development; and selling, general and administrative expenses.
The non-GAAP operating margin contracted 100 bps on a year-over-year basis to 40.7%.
Balance Sheet & Cash Flow
As of Jun 30, 2022, cash and short-term investments amounted to $517.6 million compared with $657.8 million as of Mar 31, 2022.
As of Jun 30, 2022, the company’s long-term debt stood at $753.4 million compared with $744.5 million as of Mar 31, 2022.
In the quarter under review, cash from operations remained flat at $118.9 million compared with the prior-year quarter.
In the quarter under review, the company did not repurchase shares. As of Jun 30, 2022, it had 2 million shares remaining under the share buyback program.
Guidance
For third-quarter 2022, ANSYS expects non-GAAP earnings of $1.56-$1.70 per share. The Zacks Consensus Estimate is pegged at $1.62.
Non-GAAP revenues are anticipated to be between $455 million and $475 million. Management projects a non-GAAP operating margin of 37.8-39.4%.
For 2022, ANSYS expects non-GAAP revenues of $2.005-$2.055 billion. The Zacks Consensus Estimate is pegged at $2.05 billion.
Management expects a non-GAAP operating margin of 41-42% for 2022.
Non-GAAP earnings are envisioned to be $7.50-$7.88 per share. The Zacks Consensus Estimate for earnings is pegged at $7.79 per share.
ACV is anticipated to be between $1.98 billion and $2.02 billion, while the operating cash flow is projected between $570 million and $610 million for 2022.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 20.4% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 7% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 3.1% of their value in the past year.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.76 per share, declining 15.9% in the past 60 days. The long-term earnings growth rate is anticipated to be 15%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 141.1%. Shares of IDCC have declined 9% in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
ANSYS (ANSS) Q2 Earnings Beat Estimates, Revenues Up Y/Y
ANSYS Inc. (ANSS - Free Report) reported second-quarter 2022 earnings of $1.77 per share, beating the Zacks Consensus Estimate by 9.94%. The bottom line decreased 4.3% year over year.
Non-GAAP revenues of $475.9 million surpassed the Zacks Consensus Estimate by 1.97%. The top line increased 5% (up 12% at constant currency or cc) from the year-ago quarter.
High-performance computing, 5G, and sustainability boosted high-tech and semiconductor industry growth in the Europe, Middle East, and Africa (EMEA) and Asia-Pacific regions. The company saw double-digit growth for its electrification and advanced driver assistance systems business segment in the Americas and the Asia-Pacific region. Deferred revenues and backlogs were $1.179 billion, up 27.2% year over year.
Following the announcement, shares of the company were up 2.1% in the pre-market trading on Aug 4, 2022. In the past year, shares of ANSYS have lost 24.3% compared with the industry’s decline of 12.5%.
ANSYS, Inc. Price, Consensus and EPS Surprise
ANSYS, Inc. price-consensus-eps-surprise-chart | ANSYS, Inc. Quote
Quarter in Detail
Subscription lease revenues (28.4% of non-GAAP revenues) increased 12.4% at cc to $135 million. Perpetual licenses’ revenues (15.5%) decreased 9.3% year over year at cc to $73.9 million.
Maintenance revenues (52.5%) increased 17.7% at cc to $249.7 million. Service revenues (3.6%) rose 33.1% year over year to $17.2 million.
Direct and indirect channels contributed 73.7% and 26.3%, respectively, to non-GAAP revenues.
Annual contract value or ACV increased 6.9% year over year (up 13.2% at cc) to $460.3 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 41.4%, 25.9% and 32.7% to non-GAAP revenues, respectively.
Non-GAAP revenues from the Americas were down 10.9% to $196.8 million at cc. Revenues from EMEA increased 29.2% to $123.4 million at cc. Revenues from the Asia-Pacific increased 36.2% to $155.6 million at cc.
Strength in the industrial and energy industries, high-tech, and automotive sectors increased overall revenues.
Operating Details
The non-GAAP gross margin expanded 100 basis points (bps) on a year-over-year basis to 91%.
Total operating expenses increased 6.6% year over year to $283.3 million due to higher research and development; and selling, general and administrative expenses.
The non-GAAP operating margin contracted 100 bps on a year-over-year basis to 40.7%.
Balance Sheet & Cash Flow
As of Jun 30, 2022, cash and short-term investments amounted to $517.6 million compared with $657.8 million as of Mar 31, 2022.
As of Jun 30, 2022, the company’s long-term debt stood at $753.4 million compared with $744.5 million as of Mar 31, 2022.
In the quarter under review, cash from operations remained flat at $118.9 million compared with the prior-year quarter.
In the quarter under review, the company did not repurchase shares. As of Jun 30, 2022, it had 2 million shares remaining under the share buyback program.
Guidance
For third-quarter 2022, ANSYS expects non-GAAP earnings of $1.56-$1.70 per share. The Zacks Consensus Estimate is pegged at $1.62.
Non-GAAP revenues are anticipated to be between $455 million and $475 million.
Management projects a non-GAAP operating margin of 37.8-39.4%.
For 2022, ANSYS expects non-GAAP revenues of $2.005-$2.055 billion. The Zacks Consensus Estimate is pegged at $2.05 billion.
Management expects a non-GAAP operating margin of 41-42% for 2022.
Non-GAAP earnings are envisioned to be $7.50-$7.88 per share. The Zacks Consensus Estimate for earnings is pegged at $7.79 per share.
ACV is anticipated to be between $1.98 billion and $2.02 billion, while the operating cash flow is projected between $570 million and $610 million for 2022.
Zacks Rank & Stocks to Consider
ANSYS currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader technology space are Badger Meter (BMI - Free Report) , InterDigital (IDCC - Free Report) and Cadence Design Systems (CDNS - Free Report) . Cadence Design Systems and Badger Meter sport a Zacks Rank #1 (Strong Buy) whereas InterDigital carries a Zacks Rank #2 (Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 20.4% in the past year.
The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 7% in the past 60 days.
Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 3.1% of their value in the past year.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.76 per share, declining 15.9% in the past 60 days. The long-term earnings growth rate is anticipated to be 15%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 141.1%. Shares of IDCC have declined 9% in the past year.