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.
PTC's Q1 Earnings Miss Estimates, Revenues Increase Y/Y
Read MoreHide Full Article
PTC Inc (PTC - Free Report) reported first-quarter fiscal 2023 non-GAAP earnings of 99 cents per share, up 4% on a year-over-year basis. However, the figure lagged the Zacks Consensus Estimate by 2%.
Revenues came in at $466 million, up 2% year over year (up 9% at constant currency or cc). The top line beat the Zacks Consensus Estimate by 0.4%.
The year-over-year improvement in the top line was driven by steady demand for software products and services to support SaaS and digital transformation. The company is also working toward accelerating the SaaS transition by launching Windchill plus and other SaaS offerings like Creo Plus in fiscal 2023.
In the first quarter, the company also landed several Windchill plus deals. Continued momentum in Onshape and Arena will further assist the company in the SaaS transition.
Synergies from the recent acquisition of ServiceMax and Codebeamer are expected to strengthen PTC’s closed-loop product lifecycle management (PLM) solutions by providing enterprise asset management and FSM companies with monitoring and servicing product record after the product moves into customer use, added the company. Unfavorable forex movement and the impact of the Russia-Ukraine war were dampeners.
Top Line in Detail
Recurring revenues of $417.1 million rose 3% year over year. Perpetual licenses increased 53.1% to $13.2 million.
Revenues by License, Support and Services
License revenues (37.1% of total revenues) were $172.7 million, up 2.1% from the year-ago quarter’s figure.
Support and cloud services revenues (55.3%) of $257.6 million increased 5.4% year over year.
Professional services revenues (7.6%) were $35.6 million, down 19.4% year over year.
Revenues by Product Group
PLM and computer-aided design (CAD) businesses continue to witness healthy growth. In the first quarter, PLM and CAD revenues were $279 million and $187 million, rising 4% and declining 1% year over year, respectively.
ARR Performance
Annualized recurring revenues (ARR) were $1.663 billion, up 11% year over year (up 15% at cc). The uptick was driven by strong performance across all divisions and geographies.
In the first quarter, PLM and CAD ARR were $936 million and $727 million, rising 16% and 5% year over year, respectively.
Operating Details
Non-GAAP gross margin decreased 30 bps on a year-over-year basis at 81.6%.
Total operating expenses decreased $35 million year over year at $265 million.
Operating income on a non-GAAP basis improved 5.1% year over year to $166 million.
Operating margin on a non-GAAP basis expanded 100 bps on a year-over-year basis to 36%.
Balance Sheet & Cash Flow
As of Dec 31, 2022, cash, cash equivalents and marketable securities were $387.6 million compared with $272 million as of Sep 30, 2022.
Total debt, net of deferred issuance costs, was $1.351 billion as of Dec 31, 2022, compared with $1.35 billion as of Sep 30, 2022.
Cash provided by operating activities came in at $181 million compared with the prior-year quarter figure of $138 million.
The free cash flow was $172 million compared with $134 million reported in the previous year’s quarter.
Fiscal 2023 Guidance
For fiscal 2023, ARR is now expected to be $1.910-$1.960 billion, which indicates a rise of 22-25% year over year at cc.
Revenues for fiscal 2023 are projected in the range of $2.070-$2.150 billion, indicating a rise of 7-11% year over year.
For fiscal 2023, cash from operations is projected to be $595 million, indicating a rise of 37% on a year-over-year basis. The free cash flow is forecasted to be $575 million, suggesting 38% increase.
For the fiscal second quarter, PTC expects ARR to be between $1.790 and $1.810 billion. Cash from operations is projected to be $205 million, and free cash flow is forecasted to be $200 million.
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.38 per share, rising 0.2 in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have increased 1.4% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.37 per share, rising 2.3% 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 all the last four quarters, the average being 8.8%. Shares of JBL have increased 26.4% in the past year.
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2023 earnings is pegged at $9.54 per share, up by 4.1% in the past 60 days.
Super Micro Computer’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 7.8%. Shares of SMCI have been up 70.7% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PTC's Q1 Earnings Miss Estimates, Revenues Increase Y/Y
PTC Inc (PTC - Free Report) reported first-quarter fiscal 2023 non-GAAP earnings of 99 cents per share, up 4% on a year-over-year basis. However, the figure lagged the Zacks Consensus Estimate by 2%.
Revenues came in at $466 million, up 2% year over year (up 9% at constant currency or cc). The top line beat the Zacks Consensus Estimate by 0.4%.
The year-over-year improvement in the top line was driven by steady demand for software products and services to support SaaS and digital transformation. The company is also working toward accelerating the SaaS transition by launching Windchill plus and other SaaS offerings like Creo Plus in fiscal 2023.
PTC Inc. Price, Consensus and EPS Surprise
PTC Inc. price-consensus-eps-surprise-chart | PTC Inc. Quote
In the first quarter, the company also landed several Windchill plus deals. Continued momentum in Onshape and Arena will further assist the company in the SaaS transition.
Synergies from the recent acquisition of ServiceMax and Codebeamer are expected to strengthen PTC’s closed-loop product lifecycle management (PLM) solutions by providing enterprise asset management and FSM companies with monitoring and servicing product record after the product moves into customer use, added the company. Unfavorable forex movement and the impact of the Russia-Ukraine war were dampeners.
Top Line in Detail
Recurring revenues of $417.1 million rose 3% year over year. Perpetual licenses increased 53.1% to $13.2 million.
Revenues by License, Support and Services
License revenues (37.1% of total revenues) were $172.7 million, up 2.1% from the year-ago quarter’s figure.
Support and cloud services revenues (55.3%) of $257.6 million increased 5.4% year over year.
Professional services revenues (7.6%) were $35.6 million, down 19.4% year over year.
Revenues by Product Group
PLM and computer-aided design (CAD) businesses continue to witness healthy growth. In the first quarter, PLM and CAD revenues were $279 million and $187 million, rising 4% and declining 1% year over year, respectively.
ARR Performance
Annualized recurring revenues (ARR) were $1.663 billion, up 11% year over year (up 15% at cc). The uptick was driven by strong performance across all divisions and geographies.
In the first quarter, PLM and CAD ARR were $936 million and $727 million, rising 16% and 5% year over year, respectively.
Operating Details
Non-GAAP gross margin decreased 30 bps on a year-over-year basis at 81.6%.
Total operating expenses decreased $35 million year over year at $265 million.
Operating income on a non-GAAP basis improved 5.1% year over year to $166 million.
Operating margin on a non-GAAP basis expanded 100 bps on a year-over-year basis to 36%.
Balance Sheet & Cash Flow
As of Dec 31, 2022, cash, cash equivalents and marketable securities were $387.6 million compared with $272 million as of Sep 30, 2022.
Total debt, net of deferred issuance costs, was $1.351 billion as of Dec 31, 2022, compared with $1.35 billion as of Sep 30, 2022.
Cash provided by operating activities came in at $181 million compared with the prior-year quarter figure of $138 million.
The free cash flow was $172 million compared with $134 million reported in the previous year’s quarter.
Fiscal 2023 Guidance
For fiscal 2023, ARR is now expected to be $1.910-$1.960 billion, which indicates a rise of 22-25% year over year at cc.
Revenues for fiscal 2023 are projected in the range of $2.070-$2.150 billion, indicating a rise of 7-11% year over year.
For fiscal 2023, cash from operations is projected to be $595 million, indicating a rise of 37% on a year-over-year basis. The free cash flow is forecasted to be $575 million, suggesting 38% increase.
For the fiscal second quarter, PTC expects ARR to be between $1.790 and $1.810 billion. Cash from operations is projected to be $205 million, and free cash flow is forecasted to be $200 million.
Zacks Rank & Stocks to Consider
Currently, PTC carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Super Micro Computer (SMCI - Free Report) . Jabil sports a Zacks Rank #1 (Strong Buy), while Arista Networks and Super Micro Computer carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.38 per share, rising 0.2 in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have increased 1.4% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.37 per share, rising 2.3% 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 all the last four quarters, the average being 8.8%. Shares of JBL have increased 26.4% in the past year.
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2023 earnings is pegged at $9.54 per share, up by 4.1% in the past 60 days.
Super Micro Computer’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 7.8%. Shares of SMCI have been up 70.7% in the past year.