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Factors to Note Ahead of ANSYS' (ANSS) Q3 Earnings Release
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ANSYS, Inc (ANSS - Free Report) is scheduled to report third-quarter 2022 results on Nov 2.
The company expects non-GAAP earnings in the range of $1.56-$1.70 per share for the third quarter. The Zacks Consensus Estimate for earnings is pegged at $1.62 per share, unchanged in the past 30 days. The figure indicates an increase of 1.9% from the year-ago quarter’s reported figure.
Non-GAAP revenues are anticipated to be between $455 million and $475 million. The consensus mark for revenues is pegged at $467 million, suggesting growth of 4.8% from the prior-year quarter’s levels.
The company has a trailing four-quarter earnings surprise of 13.2%, on average. In the past year, shares have lost 41.3% of their value compared with the industry’s decline of 31.2%.
Higher adoption of ANSYS’ simulation solutions in various verticals like aerospace & defense, high tech, ground transportation and automotive is likely to have favored the top line in the quarter. Increased demand for high-performance computing and 5G wireless system in the semiconductor space also bode well.
Continued momentum in subscription lease licenses is likely to have aided third-quarter revenue performance, owing to customers shifting from perpetual licenses to subscription leases.
Increased demand for advanced driver assistance systems technology, owing to rising safety norms and sensor development solutions, is likely to drive demand for the company’s simulation solutions.
Strong channel distribution, go-to-market momentum and a solid pipeline are expected to have contributed to annual contract value.
The Zacks Consensus Estimate for Maintenance and Service revenues is pegged at $266 million, indicating growth of 10.4% from the year-ago quarter’s levels.
The consensus mark for Software License revenues is pegged at $202 million, which suggests an increase of 1% from the prior-year quarter’s levels.
Higher costs on product enhancements, acquisitions and research and development are likely to have exerted pressure on margin expansion in the quarter to be reported.
Recent Developments
In the quarter under review, ANSYS announced the acquisition of Cullimore and Ring Technologies or C&R Technologies to bolster its position in the simulation solutions market, especially in the lucrative Aerospace as well as defense and private space industry verticals.
C&R Technologies offers a thermal-centric modeling approach that provides quick and effective system-level simulation capabilities. When combined with ANSYS’ physical solvers, these will provide customers with enhanced fidelity through every stage of thermal system design and optimization for a variety of applications.
The company also announced that it plans to reduce its carbon footprint by 15% by minimizing materials waste and physical prototyping. The company plans to reach its target by 2027.
What Our Model Says
Our proven model does not predict an earnings beat for ANSYS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
ANSYS has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
The Zacks Consensus Estimate for United States Cellular’s to-be-reported quarter’s earnings and revenues is pegged at 20 cents per share and $1.03 billion, respectively. United States Cellular surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 27.6%. Shares of USM lost 1.8% in the past year.
Marriott International (MAR - Free Report) has an Earnings ESP of +1.55% and currently has a Zacks Rank #1. Marriott International is scheduled to report earnings on Nov 3.
The Zacks Consensus Estimate for Marriott International’s to-be-reported quarter’s earnings and revenues is pegged at $1.69 per share and $5.27 billion, respectively. Marriott International surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 18.6%. Shares of MAR lost 1.4% in the past year.
SPX Technologies (SPXC - Free Report) has an Earnings ESP of +1.01% and currently has a Zacks Rank #2. SPX Technologies is scheduled to report earnings on Nov 3.
The Zacks Consensus Estimate for SPX Technologies to-be-reported quarter’s earnings and revenues is pegged at 66 cents per share and $352 million, respectively. SPX Technologies surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 9.1%. Shares of SPXC increased 12.4% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Factors to Note Ahead of ANSYS' (ANSS) Q3 Earnings Release
ANSYS, Inc (ANSS - Free Report) is scheduled to report third-quarter 2022 results on Nov 2.
The company expects non-GAAP earnings in the range of $1.56-$1.70 per share for the third quarter. The Zacks Consensus Estimate for earnings is pegged at $1.62 per share, unchanged in the past 30 days. The figure indicates an increase of 1.9% from the year-ago quarter’s reported figure.
Non-GAAP revenues are anticipated to be between $455 million and $475 million. The consensus mark for revenues is pegged at $467 million, suggesting growth of 4.8% from the prior-year quarter’s levels.
The company has a trailing four-quarter earnings surprise of 13.2%, on average. In the past year, shares have lost 41.3% of their value compared with the industry’s decline of 31.2%.
ANSYS, Inc. Price and EPS Surprise
ANSYS, Inc. price-eps-surprise | ANSYS, Inc. Quote
Factors to Note
Higher adoption of ANSYS’ simulation solutions in various verticals like aerospace & defense, high tech, ground transportation and automotive is likely to have favored the top line in the quarter. Increased demand for high-performance computing and 5G wireless system in the semiconductor space also bode well.
Continued momentum in subscription lease licenses is likely to have aided third-quarter revenue performance, owing to customers shifting from perpetual licenses to subscription leases.
Increased demand for advanced driver assistance systems technology, owing to rising safety norms and sensor development solutions, is likely to drive demand for the company’s simulation solutions.
Strong channel distribution, go-to-market momentum and a solid pipeline are expected to have contributed to annual contract value.
The Zacks Consensus Estimate for Maintenance and Service revenues is pegged at $266 million, indicating growth of 10.4% from the year-ago quarter’s levels.
The consensus mark for Software License revenues is pegged at $202 million, which suggests an increase of 1% from the prior-year quarter’s levels.
Higher costs on product enhancements, acquisitions and research and development are likely to have exerted pressure on margin expansion in the quarter to be reported.
Recent Developments
In the quarter under review, ANSYS announced the acquisition of Cullimore and Ring Technologies or C&R Technologies to bolster its position in the simulation solutions market, especially in the lucrative Aerospace as well as defense and private space industry verticals.
C&R Technologies offers a thermal-centric modeling approach that provides quick and effective system-level simulation capabilities. When combined with ANSYS’ physical solvers, these will provide customers with enhanced fidelity through every stage of thermal system design and optimization for a variety of applications.
The company also announced that it plans to reduce its carbon footprint by 15% by minimizing materials waste and physical prototyping. The company plans to reach its target by 2027.
What Our Model Says
Our proven model does not predict an earnings beat for ANSYS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
ANSYS has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
United States Cellular (USM - Free Report) has an Earnings ESP of +47.46% and currently has a Zacks Rank #1. United States Cellular is scheduled to report earnings on Nov 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for United States Cellular’s to-be-reported quarter’s earnings and revenues is pegged at 20 cents per share and $1.03 billion, respectively. United States Cellular surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 27.6%. Shares of USM lost 1.8% in the past year.
Marriott International (MAR - Free Report) has an Earnings ESP of +1.55% and currently has a Zacks Rank #1. Marriott International is scheduled to report earnings on Nov 3.
The Zacks Consensus Estimate for Marriott International’s to-be-reported quarter’s earnings and revenues is pegged at $1.69 per share and $5.27 billion, respectively. Marriott International surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 18.6%. Shares of MAR lost 1.4% in the past year.
SPX Technologies (SPXC - Free Report) has an Earnings ESP of +1.01% and currently has a Zacks Rank #2. SPX Technologies is scheduled to report earnings on Nov 3.
The Zacks Consensus Estimate for SPX Technologies to-be-reported quarter’s earnings and revenues is pegged at 66 cents per share and $352 million, respectively. SPX Technologies surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 9.1%. Shares of SPXC increased 12.4% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.