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ANSYS (ANSS) Q3 Earnings Beat Estimates, Revenues Up Y/Y
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ANSYS Inc. (ANSS - Free Report) reported third-quarter 2022 earnings of $1.77 per share, beating the Zacks Consensus Estimate by 9.26%. The bottom line increased 11.3% year over year.
Non-GAAP revenues of $473.7 million surpassed the Zacks Consensus Estimate by 1.44%. The top line increased 6.3% (up 15% at constant currency or cc) from the year-ago quarter.
The company’s multiphysics solutions boosted high-tech industry growth in the Americas, along with several deals in the EMEA and Asia-Pacific markets. The company saw double-digit growth for its healthcare segment in the Americas and the EMEA region. Deferred revenues and backlogs were $1.108 billion, up 23.3% year over year.
In the past year, shares of ANSYS have lost 48.9% compared with the industry’s decline of 36.8%.
Image Source: Zacks Investment Research
Quarter in Detail
Subscription lease revenues (28.8% of non-GAAP revenues) increased 25.6% at cc to $136.5 million. Perpetual licenses’ revenues (15.3%) decreased 4.3% year over year at cc to $72.4 million.
Maintenance revenues (52.5%) increased 17.3% at cc to $248.8 million. Service revenues (3.4%) declined 1.2% year over year to $15.9 million.
Direct and indirect channels contributed 74.8% and 25.2%, respectively, to non-GAAP revenues.
Annual contract value or ACV increased 12% year over year (up 20.2% at cc) to $409.3 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 44.3%, 25.4% and 30.2% to non-GAAP revenues, respectively.
Non-GAAP revenues from the Americas were down 5.8% to $209.9 million at cc. Revenues from EMEA increased 36% to $120.4 million at cc. Revenues from the Asia-Pacific increased 35.7% to $143.2 million at cc.
Strength in the aerospace and defense, high-tech and automotive sectors increased overall revenues.
In the third quarter, 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.
Operating Details
The non-GAAP gross margin expanded 120 basis points (bps) on a year-over-year basis to 91.1%.
Total operating expenses increased 6.1% year over year to $287.2 million due to higher research and development; and selling, general and administrative expenses.
The non-GAAP operating margin expanded 130 bps on a year-over-year basis to 41%.
Balance Sheet & Cash Flow
As of Sep 30, 2022, cash and short-term investments amounted to $632.7 million compared with $517.6 million as of Jun 30, 2022.
As of Sep 30, 2022, the company’s long-term debt stood at $753.5 million compared with $753.4 million as of Jun 30, 2022.
In the quarter under review, cash from operations decreased 19.4% year over year to $127.2 million.
In the quarter under review, the company did not repurchase shares. As of Sep 30, 2022, it had 2 million shares remaining under the share buyback program.
Guidance
For fourth-quarter 2022, ANSYS expects non-GAAP earnings of $2.58-$2.90 per share. The Zacks Consensus Estimate is pegged at $2.95.
Non-GAAP revenues are anticipated to be between $621.8 million and $656.8 million.Management projects a non-GAAP operating margin of 45.6-48.5%.
For 2022, ANSYS expects non-GAAP revenues of $2 -$2.035 billion. The Zacks Consensus Estimate is pegged at $2.03 billion.
Management expects a non-GAAP operating margin of 41-42% for 2022.
Non-GAAP earnings are envisioned to be $7.48-$7.80 per share. The Zacks Consensus Estimate for earnings is pegged at $7.75 per share.
ACV is anticipated to be between $1.975 billion and $2 billion, while the operating cash flow is projected between $570 million and $600 million for 2022.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.45 per share, up 2.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 81.9%. Shares of IDCC have decreased 34% in the past year.
The Zacks Consensus Estimate for PSTG 2022 earnings is pegged at $1.18 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have increased 10.7% in the past year.
The Zacks Consensus Estimate for Jabil’s fiscal 2023 earnings is pegged at $8.18 per share, rising 3.8 in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 9.3%. Shares of JBL have increased 0.8% in the past year.
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ANSYS (ANSS) Q3 Earnings Beat Estimates, Revenues Up Y/Y
ANSYS Inc. (ANSS - Free Report) reported third-quarter 2022 earnings of $1.77 per share, beating the Zacks Consensus Estimate by 9.26%. The bottom line increased 11.3% year over year.
Non-GAAP revenues of $473.7 million surpassed the Zacks Consensus Estimate by 1.44%. The top line increased 6.3% (up 15% at constant currency or cc) from the year-ago quarter.
ANSYS, Inc. Price, Consensus and EPS Surprise
ANSYS, Inc. price-consensus-eps-surprise-chart | ANSYS, Inc. Quote
The company’s multiphysics solutions boosted high-tech industry growth in the Americas, along with several deals in the EMEA and Asia-Pacific markets. The company saw double-digit growth for its healthcare segment in the Americas and the EMEA region. Deferred revenues and backlogs were $1.108 billion, up 23.3% year over year.
In the past year, shares of ANSYS have lost 48.9% compared with the industry’s decline of 36.8%.
Image Source: Zacks Investment Research
Quarter in Detail
Subscription lease revenues (28.8% of non-GAAP revenues) increased 25.6% at cc to $136.5 million. Perpetual licenses’ revenues (15.3%) decreased 4.3% year over year at cc to $72.4 million.
Maintenance revenues (52.5%) increased 17.3% at cc to $248.8 million. Service revenues (3.4%) declined 1.2% year over year to $15.9 million.
Direct and indirect channels contributed 74.8% and 25.2%, respectively, to non-GAAP revenues.
Annual contract value or ACV increased 12% year over year (up 20.2% at cc) to $409.3 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 44.3%, 25.4% and 30.2% to non-GAAP revenues, respectively.
Non-GAAP revenues from the Americas were down 5.8% to $209.9 million at cc. Revenues from EMEA increased 36% to $120.4 million at cc. Revenues from the Asia-Pacific increased 35.7% to $143.2 million at cc.
Strength in the aerospace and defense, high-tech and automotive sectors increased overall revenues.
In the third quarter, 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.
Operating Details
The non-GAAP gross margin expanded 120 basis points (bps) on a year-over-year basis to 91.1%.
Total operating expenses increased 6.1% year over year to $287.2 million due to higher research and development; and selling, general and administrative expenses.
The non-GAAP operating margin expanded 130 bps on a year-over-year basis to 41%.
Balance Sheet & Cash Flow
As of Sep 30, 2022, cash and short-term investments amounted to $632.7 million compared with $517.6 million as of Jun 30, 2022.
As of Sep 30, 2022, the company’s long-term debt stood at $753.5 million compared with $753.4 million as of Jun 30, 2022.
In the quarter under review, cash from operations decreased 19.4% year over year to $127.2 million.
In the quarter under review, the company did not repurchase shares. As of Sep 30, 2022, it had 2 million shares remaining under the share buyback program.
Guidance
For fourth-quarter 2022, ANSYS expects non-GAAP earnings of $2.58-$2.90 per share. The Zacks Consensus Estimate is pegged at $2.95.
Non-GAAP revenues are anticipated to be between $621.8 million and $656.8 million.Management projects a non-GAAP operating margin of 45.6-48.5%.
For 2022, ANSYS expects non-GAAP revenues of $2 -$2.035 billion. The Zacks Consensus Estimate is pegged at $2.03 billion.
Management expects a non-GAAP operating margin of 41-42% for 2022.
Non-GAAP earnings are envisioned to be $7.48-$7.80 per share. The Zacks Consensus Estimate for earnings is pegged at $7.75 per share.
ACV is anticipated to be between $1.975 billion and $2 billion, while the operating cash flow is projected between $570 million and $600 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 InterDigital (IDCC - Free Report) , Pure Storage (PSTG - Free Report) and Jabil (JBL - Free Report) . InterDigital and Jabil currently sport a Zacks Rank #1 (Strong Buy), whereas Pure Storage currently holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.45 per share, up 2.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 81.9%. Shares of IDCC have decreased 34% in the past year.
The Zacks Consensus Estimate for PSTG 2022 earnings is pegged at $1.18 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have increased 10.7% in the past year.
The Zacks Consensus Estimate for Jabil’s fiscal 2023 earnings is pegged at $8.18 per share, rising 3.8 in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 9.3%. Shares of JBL have increased 0.8% in the past year.