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ANSYS (ANSS) Q1 Earnings & Revenues Beat Estimates, Up Y/Y
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ANSYS Inc (ANSS - Free Report) reported first-quarter 2023 earnings of $1.85 per share, beating the Zacks Consensus Estimate by 16.4%. The bottom line increased 36% year over year.
Non-GAAP revenues of $509.4 million surpassed the Zacks Consensus Estimate by 3.5%. The top line increased 19% (up 22% at constant currency or cc) from the year-ago quarter.
The company’s solutions continue to witness strong demand in high-tech, aerospace and automotive, along with strong growth across all regions. Deferred revenues and backlogs were $1.357 billion, up 12.8% year over year.
Subscription lease revenues (29% of non-GAAP revenues) increased 64.4% at cc to $147.9 million. Perpetual licenses’ revenues (14%) increased 10.5% year over year at cc to $71.2 million.
Maintenance revenues (52.7%) increased 10.7% at cc to $268.6 million. Service revenues (4.3%) were up 9.2% year over year to $21.7 million.
Direct and indirect channels contributed 76.3% and 23.7%, respectively, to non-GAAP revenues.
Annual contract value or ACV increased 16.1% year over year (up 19.4% at cc) to $399.4 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 50.4%, 23.8% and 25.8% to non-GAAP revenues, respectively.
Non-GAAP revenues from the Americas were up 24.7% to $256.9 million at cc. Revenues from EMEA increased 19.5% to $121.1 million at cc. Revenues from the Asia-Pacific increased 19.8% to $131.4 million at cc.
Strength in the aerospace and defense, high-tech and automotive sectors increased overall revenues.
Operating Details
The non-GAAP gross margin expanded 160 basis points (bps) on a year-over-year basis to 91.2%.
Total operating expenses increased 12.5% year over year to $314.1 million due to higher research and development and selling, general and administrative expenses.
The non-GAAP operating margin expanded 510 bps on a year-over-year basis to 39.8%.
Balance Sheet & Cash Flow
As of Mar 31, 2023, cash and short-term investments amounted to $507.8 million compared with $614.6 million as of Dec 31, 2022.
As of Mar 31, 2023, the company’s long-term debt was $753.6 million compared with $753.5 million as of Dec 31, 2022.
In the quarter under review, cash from operations increased 24% year over year to $260 million.
In the quarter under review, the company repurchased 649,900 shares for $196.5 million. As of Mar 31, 2023, it had 1.1 million shares remaining under the share buyback program.
Guidance
For second-quarter 2023, ANSYS expects non-GAAP earnings of $1.35-$1.53 per share.
Non-GAAP revenues are anticipated to be between $473 million and $498 million. Management projects a non-GAAP operating margin of 31.9-34.1%.
For 2023, ANSYS expects non-GAAP revenues of $2,242-$2,322 million. Management expects a non-GAAP operating margin of 41-42%.
Non-GAAP earnings are envisioned to be in the range of $8.39-$8.91 per share compared with the previous guidance of $8.34-$8.86.
ACV is anticipated to be between $2,265 million and $2,335 million while operating cash flow is projected to be between $699 million and $749 million for 2023.
The Zacks Consensus Estimate for Arista Networks’ 2023 earnings has increased 0.3% in the past 60 days to $5.81 per share. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.7%. Shares of ANET have increased 29% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have increased 122.4% in the past year.
The Zacks Consensus Estimate for Enfusion’s 2023 earnings has increased 5.6% in the past 60 days to 19 cents per share.
Enfusion’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, the average surprise being 18.8%. Shares of the company have increased 3.2% in the past year.
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ANSYS (ANSS) Q1 Earnings & Revenues Beat Estimates, Up Y/Y
ANSYS Inc (ANSS - Free Report) reported first-quarter 2023 earnings of $1.85 per share, beating the Zacks Consensus Estimate by 16.4%. The bottom line increased 36% year over year.
Non-GAAP revenues of $509.4 million surpassed the Zacks Consensus Estimate by 3.5%. The top line increased 19% (up 22% at constant currency or cc) from the year-ago quarter.
The company’s solutions continue to witness strong demand in high-tech, aerospace and automotive, along with strong growth across all regions. Deferred revenues and backlogs were $1.357 billion, up 12.8% year over year.
ANSYS, Inc. Price, Consensus and EPS Surprise
ANSYS, Inc. price-consensus-eps-surprise-chart | ANSYS, Inc. Quote
Quarter in Detail
Subscription lease revenues (29% of non-GAAP revenues) increased 64.4% at cc to $147.9 million. Perpetual licenses’ revenues (14%) increased 10.5% year over year at cc to $71.2 million.
Maintenance revenues (52.7%) increased 10.7% at cc to $268.6 million. Service revenues (4.3%) were up 9.2% year over year to $21.7 million.
Direct and indirect channels contributed 76.3% and 23.7%, respectively, to non-GAAP revenues.
Annual contract value or ACV increased 16.1% year over year (up 19.4% at cc) to $399.4 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 50.4%, 23.8% and 25.8% to non-GAAP revenues, respectively.
Non-GAAP revenues from the Americas were up 24.7% to $256.9 million at cc. Revenues from EMEA increased 19.5% to $121.1 million at cc. Revenues from the Asia-Pacific increased 19.8% to $131.4 million at cc.
Strength in the aerospace and defense, high-tech and automotive sectors increased overall revenues.
Operating Details
The non-GAAP gross margin expanded 160 basis points (bps) on a year-over-year basis to 91.2%.
Total operating expenses increased 12.5% year over year to $314.1 million due to higher research and development and selling, general and administrative expenses.
The non-GAAP operating margin expanded 510 bps on a year-over-year basis to 39.8%.
Balance Sheet & Cash Flow
As of Mar 31, 2023, cash and short-term investments amounted to $507.8 million compared with $614.6 million as of Dec 31, 2022.
As of Mar 31, 2023, the company’s long-term debt was $753.6 million compared with $753.5 million as of Dec 31, 2022.
In the quarter under review, cash from operations increased 24% year over year to $260 million.
In the quarter under review, the company repurchased 649,900 shares for $196.5 million. As of Mar 31, 2023, it had 1.1 million shares remaining under the share buyback program.
Guidance
For second-quarter 2023, ANSYS expects non-GAAP earnings of $1.35-$1.53 per share.
Non-GAAP revenues are anticipated to be between $473 million and $498 million. Management projects a non-GAAP operating margin of 31.9-34.1%.
For 2023, ANSYS expects non-GAAP revenues of $2,242-$2,322 million. Management expects a non-GAAP operating margin of 41-42%.
Non-GAAP earnings are envisioned to be in the range of $8.39-$8.91 per share compared with the previous guidance of $8.34-$8.86.
ACV is anticipated to be between $2,265 million and $2,335 million while operating cash flow is projected to be between $699 million and $749 million for 2023.
Zacks Rank & Stocks to Consider
ANSYS currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Badger Meter (BMI - Free Report) and Enfusion (ENFN - Free Report) . Badger Meter and Enfusion currently sport a Zacks Rank #1 (Strong Buy), whereas Arista Networks 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 Arista Networks’ 2023 earnings has increased 0.3% in the past 60 days to $5.81 per share. The long-term earnings growth rate is anticipated to be 14.2%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 14.7%. Shares of ANET have increased 29% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has increased 4.7% in the past 60 days to $2.69 per share.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 5.3%. Shares of BMI have increased 122.4% in the past year.
The Zacks Consensus Estimate for Enfusion’s 2023 earnings has increased 5.6% in the past 60 days to 19 cents per share.
Enfusion’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, the average surprise being 18.8%. Shares of the company have increased 3.2% in the past year.