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Factors to Note Ahead of ANSYS (ANSS) Q4 Earnings Release

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ANSYS, Inc (ANSS - Free Report) is scheduled to report fourth-quarter 2022 results on Feb 22.

The company expects non-GAAP earnings in the range of $2.58-$2.90 per share. The Zacks Consensus Estimate for earnings is pegged at $2.79 per share, unchanged in the past 30 days. The figure indicates a decline of 0.7% from the year-ago quarter’s reported figure.

Non-GAAP revenues are anticipated to be between $621.8 million and $656.8 million. The Zacks Consensus Estimate for revenues is pegged at $646.5 million, suggesting a decline of 2.3% from the prior-year quarter’s levels.

ANSYS, Inc. Price and EPS Surprise

The company has a trailing four-quarter earnings surprise of 10.8%, on average. In the past year, shares of ANSS have lost 12% of their value compared with the sub-industry’s decline of 6.4%.

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Factors to Note

Higher adoption of ANSYS’ simulation solutions in various verticals like aerospace & defense, high tech and automotive is likely to have favored the top line in the to-be-reported quarter. Increased demand for high-performance computing and 5G wireless systems in the semiconductor space also bode well. Increasing demand within the healthcare segment is another tailwind.

Continued momentum in subscription lease licenses is likely to have aided fourth-quarter revenue performance, owing to customers shifting from perpetual licenses to subscription leases.

Increased demand for advanced driver-assistance-systems technology, due 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 healthy pipeline are expected to have contributed to the annual contract value.

On the flip side, geopolitical instability, forex volatility and weakness in global macroeconomic conditions are likely to have weighed on the company’s performance as clients cut back on expenditure. 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 January 2023, ANSYS announced the acquisition of Engineering Simulation and Scientific Software’s (ESSS) subsidiary - Rocky DEM. This acquisition will allow ANSYS to offer its customers a broader range of engineering simulation software solutions by integrating Rocky's DEM tools and expertise.

The current acquisition is a continuation of ANSYS’ and ESSS’ collaboration in 2021 to develop DEM workflow to effectively analyze particle movement across several industrial applications.

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 #4 (Sell). 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 stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around.

Clearway Energy (CWEN - Free Report) has an Earnings ESP of +77.19% and presently carries a Zacks Rank #1. The company is slated to release quarterly numbers on Feb 23. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate is pegged at a loss of 88 cents per share and $313.2 million for revenues, respectively. Shares of the company have gained 2.3% in the past year.

IMAX Corporation (IMAX - Free Report) has an Earnings ESP of +13.33% and presently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 22.

The Zacks Consensus Estimate for IMAX’s to-be-reported quarter’s earnings and revenues are pegged at 15 cents per share and $96 million, respectively. Shares of the company have lost 16.1% in the past year.

Lucid Group, Inc (LCID - Free Report) has an Earnings ESP of +3.90% and currently carries a Zacks Rank #2. The company is slated to release quarterly numbers on Feb 22.

The Zacks Consensus Estimate is pegged at a loss of 39 cents per share and $289.8 million for revenues, respectively.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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