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Factors to Note Ahead of ANSYS (ANSS) Q2 Earnings Release
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ANSYS, Inc (ANSS - Free Report) is scheduled to report second-quarter 2023 results on Aug 2.
The company expects non-GAAP earnings per share (EPS) in the range of $1.35-$1.53. The Zacks Consensus Estimate for EPS is pegged at $1.49, unchanged in the past 30 days. The figure indicates a decrease of 15.8% from the year-ago quarter’s reported figure.
Non-GAAP revenues are anticipated to be between $473 million and $498 million. The Zacks Consensus Estimate for revenues is pegged at $491.1 million, suggesting an increase of 3.2% from the prior-year quarter’s levels.
The company has a trailing four-quarter earnings surprise of 11.6%, on average.
Higher adoption of ANSYS’ simulation solutions in various verticals, like automotive and ground transportation, aerospace & defense and high tech, is likely to have favored the top line in the to-be-reported quarter.
The company is likely to have benefited from rapid growth in the high-tech industry, led by ongoing development in artificial intelligence and machine learning. Increased demand for high-performance computing and 5G wireless systems in the semiconductor space also bodes well.
Continued momentum in subscription lease licenses is likely to have aided the second-quarter revenue performance, owing to customers shifting from perpetual licenses to subscription leases.
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.
Recent Developments
In June, ANSYS expanded the capabilities of its Ansys Discovery platform by incorporating high-frequency electromagnetics modeling for antennas. This development allows engineering teams to conduct virtual exploration of multiple design areas simultaneously, minimizing the need for costly physical prototyping and testing.
In May, the company announced the acquisition of Diakopto, a provider of Electronic Design Automation solutions for integrated circuit development. The acquisition is expected to enable design engineers to "shift left," detecting interconnect parasitic problems early in the design cycle and minimizing costly iterations in the design cycle.
What Our Model Says
Our proven model does not conclusively 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. However, this is not the case here.
ANSS 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 With Favorable Combination
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 quarter.
The Zacks Consensus Estimate for PAYC’s to-be-reported quarter’s earnings and revenues is pegged at $1.60 per share and $398.2 million, respectively. Shares of PAYC have rallied 10.9% in the past year.
Rockwell Automation (ROK - Free Report) has an Earnings ESP of +1.03% and currently carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for ROK’s to-be-reported quarter’s earnings and revenues is pegged at $3.19 per share and $2.3 billion, respectively. Shares of ROK have rallied 32% in the past year.
SPX Technologies (SPXC - Free Report) currently has an Earnings ESP of +1.59% and a Zacks Rank of 2. The company is scheduled to release its second-quarter results on Aug 2.
The Zacks Consensus Estimate for SPXC’s to-be-reported quarter’s earnings and revenues is pegged at 84 cents per share and $390.7 million, respectively. Shares of SPXC have rallied 40.3% 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) Q2 Earnings Release
ANSYS, Inc (ANSS - Free Report) is scheduled to report second-quarter 2023 results on Aug 2.
The company expects non-GAAP earnings per share (EPS) in the range of $1.35-$1.53. The Zacks Consensus Estimate for EPS is pegged at $1.49, unchanged in the past 30 days. The figure indicates a decrease of 15.8% from the year-ago quarter’s reported figure.
Non-GAAP revenues are anticipated to be between $473 million and $498 million. The Zacks Consensus Estimate for revenues is pegged at $491.1 million, suggesting an increase of 3.2% from the prior-year quarter’s levels.
The company has a trailing four-quarter earnings surprise of 11.6%, on average.
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 automotive and ground transportation, aerospace & defense and high tech, is likely to have favored the top line in the to-be-reported quarter.
The company is likely to have benefited from rapid growth in the high-tech industry, led by ongoing development in artificial intelligence and machine learning. Increased demand for high-performance computing and 5G wireless systems in the semiconductor space also bodes well.
Continued momentum in subscription lease licenses is likely to have aided the second-quarter revenue performance, owing to customers shifting from perpetual licenses to subscription leases.
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.
Recent Developments
In June, ANSYS expanded the capabilities of its Ansys Discovery platform by incorporating high-frequency electromagnetics modeling for antennas. This development allows engineering teams to conduct virtual exploration of multiple design areas simultaneously, minimizing the need for costly physical prototyping and testing.
In May, the company announced the acquisition of Diakopto, a provider of Electronic Design Automation solutions for integrated circuit development. The acquisition is expected to enable design engineers to "shift left," detecting interconnect parasitic problems early in the design cycle and minimizing costly iterations in the design cycle.
What Our Model Says
Our proven model does not conclusively 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. However, this is not the case here.
ANSS 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 With Favorable Combination
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 quarter.
Paycom Software (PAYC - Free Report) has an Earnings ESP of +1.88% and currently carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PAYC’s to-be-reported quarter’s earnings and revenues is pegged at $1.60 per share and $398.2 million, respectively. Shares of PAYC have rallied 10.9% in the past year.
Rockwell Automation (ROK - Free Report) has an Earnings ESP of +1.03% and currently carries a Zacks Rank of 2. The company is scheduled to report quarterly numbers on Aug 1.
The Zacks Consensus Estimate for ROK’s to-be-reported quarter’s earnings and revenues is pegged at $3.19 per share and $2.3 billion, respectively. Shares of ROK have rallied 32% in the past year.
SPX Technologies (SPXC - Free Report) currently has an Earnings ESP of +1.59% and a Zacks Rank of 2. The company is scheduled to release its second-quarter results on Aug 2.
The Zacks Consensus Estimate for SPXC’s to-be-reported quarter’s earnings and revenues is pegged at 84 cents per share and $390.7 million, respectively. Shares of SPXC have rallied 40.3% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.