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Here's What to Expect From ANSYS' (ANSS) in Q3 Earnings
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ANSYS Inc (ANSS - Free Report) is scheduled to report third-quarter 2023 results on Nov 1.
The company expects non-GAAP earnings per share (EPS) in the range of $1.18-$1.31. The Zacks Consensus Estimate for EPS is pegged at $1.26, unchanged in the past 30 days. The figure indicates a decrease of 28.8% from the year-ago quarter’s reported figure.
Non-GAAP revenues are anticipated to be between $453.7 million and $473.7 million. The Zacks Consensus Estimate for revenues is pegged at $466.6 million, suggesting a decrease of 1.5% from the prior-year quarter’s levels.
The company has a trailing four-quarter earnings surprise of 10.9%, on average.
The company’s performance in the third quarter is likely to benefit from higher adoption of ANSYS’ simulation solutions in various verticals, like aerospace and defense (A&D), high-tech and automotive sectors.
The company is likely to have benefited from rapid growth for its high-fidelity simulation solutions, led by ongoing development in artificial intelligence and machine learning. In the automotive sector, higher demand for electric vehicles and advanced driver assistance systems solutions is likely to have favored the top line in the to-be-reported quarter.
Also, ongoing momentum in the A&D sector, owing to the evolving space sector and digital transformation, bodes well for the company’s software solutions. The company is also likely to benefit from secular growth trends in the industrial equipment industry, which include electrification, Industrial Internet of Things (IIoT) devices, and workflow automation.
Continued momentum in subscription lease licenses is likely to have aided the third-quarter revenue performance, owing to customers shifting from perpetual licenses to subscription leases.
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 July, the company announced the limited beta release of its AI virtual assistant — AnsysGPT. It will help to optimize technical support for customers for its products, relevant physics, and engineering topics.
Also, ANSYS and Altium have joined forces to enhance the process of electronic design and development. The partnership will involve connecting Ansys Electronics Desktop with Altium's electronic computer-aided design tools to create a higher level of digital continuity and improve efficiency.
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 #4 (Sell). 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 ITRI’s to-be-reported quarter’s earnings and revenues is pegged at 51 cents per share and $540.8 million, respectively. Shares of ITRI have gained 17% in the past year.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.17% and presently carries a Zacks Rank #3. CDW is slated to release quarterly numbers on Nov 1.
The Zacks Consensus Estimate for CDW’s to-be-reported quarter’s earnings and revenues is pegged at $2.59 per share and $5.82 billion, respectively. Shares of CDW have increased 15.1% in the past year.
GoDaddy Inc (GDDY - Free Report) has an Earnings ESP of +8.11% and currently sports a Zacks Rank #1. GDDY is scheduled to report quarterly earnings on Nov 2.
The Zacks Consensus Estimate for GDDY’s to-be-reported quarter’s earnings and revenues is pegged at 71 cents per share and $1.06 billion, respectively. Shares of GDDY have plunged 10.9% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Here's What to Expect From ANSYS' (ANSS) in Q3 Earnings
ANSYS Inc (ANSS - Free Report) is scheduled to report third-quarter 2023 results on Nov 1.
The company expects non-GAAP earnings per share (EPS) in the range of $1.18-$1.31. The Zacks Consensus Estimate for EPS is pegged at $1.26, unchanged in the past 30 days. The figure indicates a decrease of 28.8% from the year-ago quarter’s reported figure.
Non-GAAP revenues are anticipated to be between $453.7 million and $473.7 million. The Zacks Consensus Estimate for revenues is pegged at $466.6 million, suggesting a decrease of 1.5% from the prior-year quarter’s levels.
The company has a trailing four-quarter earnings surprise of 10.9%, on average.
ANSYS, Inc. Price and EPS Surprise
ANSYS, Inc. price-eps-surprise | ANSYS, Inc. Quote
Factors to Note
The company’s performance in the third quarter is likely to benefit from higher adoption of ANSYS’ simulation solutions in various verticals, like aerospace and defense (A&D), high-tech and automotive sectors.
The company is likely to have benefited from rapid growth for its high-fidelity simulation solutions, led by ongoing development in artificial intelligence and machine learning. In the automotive sector, higher demand for electric vehicles and advanced driver assistance systems solutions is likely to have favored the top line in the to-be-reported quarter.
Also, ongoing momentum in the A&D sector, owing to the evolving space sector and digital transformation, bodes well for the company’s software solutions. The company is also likely to benefit from secular growth trends in the industrial equipment industry, which include electrification, Industrial Internet of Things (IIoT) devices, and workflow automation.
Continued momentum in subscription lease licenses is likely to have aided the third-quarter revenue performance, owing to customers shifting from perpetual licenses to subscription leases.
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 July, the company announced the limited beta release of its AI virtual assistant — AnsysGPT. It will help to optimize technical support for customers for its products, relevant physics, and engineering topics.
Also, ANSYS and Altium have joined forces to enhance the process of electronic design and development. The partnership will involve connecting Ansys Electronics Desktop with Altium's electronic computer-aided design tools to create a higher level of digital continuity and improve efficiency.
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 #4 (Sell). 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.
Itron (ITRI - Free Report) has an Earnings ESP of +23.18% and currently flaunts a Zacks Rank of 1. ITRI is set to announce quarterly figures on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ITRI’s to-be-reported quarter’s earnings and revenues is pegged at 51 cents per share and $540.8 million, respectively. Shares of ITRI have gained 17% in the past year.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.17% and presently carries a Zacks Rank #3. CDW is slated to release quarterly numbers on Nov 1.
The Zacks Consensus Estimate for CDW’s to-be-reported quarter’s earnings and revenues is pegged at $2.59 per share and $5.82 billion, respectively. Shares of CDW have increased 15.1% in the past year.
GoDaddy Inc (GDDY - Free Report) has an Earnings ESP of +8.11% and currently sports a Zacks Rank #1. GDDY is scheduled to report quarterly earnings on Nov 2.
The Zacks Consensus Estimate for GDDY’s to-be-reported quarter’s earnings and revenues is pegged at 71 cents per share and $1.06 billion, respectively. Shares of GDDY have plunged 10.9% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.