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.
Why Is PTC Inc. (PTC) Up 7.6% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for PTC Inc. (PTC - Free Report) . Shares have added about 7.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PTC Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
PTC's Q4 Earnings Beat Estimates
PTC reported fourth-quarter fiscal 2023 non-GAAP earnings per share (EPS) of $1.2, down 5% on a year-over-year basis. However, the figure surpassed the Zacks Consensus Estimate by 5.3%.
Revenues came in at $547 million, up 8% year over year (up 6% at constant currency or cc). The top line missed the Zacks Consensus Estimate by 2.3%.
The year-over-year improvement in the top line was driven by steady demand for its product lifecycle management (PLM). Continued momentum in Onshape and Arena will further assist the company in the SaaS transition.
Top Line in Detail
Recurring revenues of $500.2 million rose 8% year over year. Perpetual licenses increased 4.7% to $8.2 million.
Revenues by License, Support and Services
License revenues (33.7% of total revenues) were $184.3 million, down 16.2% from the year-ago quarter’s figure.
Support and cloud services revenues (59.3%) of $324.1 million increased 29.1% year over year.
Professional services revenues (7%) were $38.1 million, up 3.3% year over year.
Revenues by Product Group
PLM and CAD businesses continue to witness healthy growth. In the fiscal fourth quarter, PLM revenues were $358 million, rising 17% year over year. CAD revenues were $189 million, down 7% year over year.
ARR Performance
Annualized recurring revenues (ARR) were $1.979 billion, up 26% year over year (up 23% at cc). The uptick was driven by strong performance across all divisions and geographies.
In the fiscal fourth quarter, PLM and CAD ARR were $1,188 million and $752 million, rising 36% and 12% year over year, respectively.
Operating Details
Non-GAAP gross margin decreased 170 basis points (bps) on a year-over-year basis to 81.6%.
Total operating expenses increased $43.2 million year over year to $309.6 million.
Operating income on a non-GAAP basis decreased 1.5% year over year to $201 million.
Operating margin on a non-GAAP basis decreased 350 bps on a year-over-year basis to 37%.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash, cash equivalents and marketable securities were $288.1 million compared with $281.5 million as of Jun 30, 2023.
Total debt, net of deferred issuance costs, was $1.695 billion as of Sep 30, 2023, compared with $1.738 billion as of Jun 30, 2023.
Cash provided by operating activities was $49.7 million compared with the prior-year quarter’s figure of $38.5 million.
The free cash flow was $44 million compared with $29 million reported in the year-ago quarter.
Fiscal 2024 Guidance
For fiscal 2024, ARR is expected to be $2.190-$2.250 billion, which indicates a rise of 11-14% year over year at cc.
Revenues for fiscal 2024 are projected in the range of $2.270-$2.360 billion, indicating a rise of 8-13% year over year.
For fiscal 2024, cash from operations is projected to be $745 million, indicating a rise of 22% on a year-over-year basis. The free cash flow is forecasted to be $725 million, suggesting a 23% increase year over year.
For the fiscal first quarter, PTC expects ARR between $1.995 and $2.010 billion. Cash from operations is projected to be $185 million, and free cash flow is forecasted to be $180 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -31.02% due to these changes.
VGM Scores
Currently, PTC Inc. has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PTC Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
PTC Inc. is part of the Zacks Computer - Software industry. Over the past month, Blackbaud (BLKB - Free Report) , a stock from the same industry, has gained 5.3%. The company reported its results for the quarter ended September 2023 more than a month ago.
Blackbaud reported revenues of $277.63 million in the last reported quarter, representing a year-over-year change of +6.3%. EPS of $1.12 for the same period compares with $0.69 a year ago.
For the current quarter, Blackbaud is expected to post earnings of $1.08 per share, indicating a change of +58.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Blackbaud has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is PTC Inc. (PTC) Up 7.6% Since Last Earnings Report?
It has been about a month since the last earnings report for PTC Inc. (PTC - Free Report) . Shares have added about 7.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PTC Inc. due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
PTC's Q4 Earnings Beat Estimates
PTC reported fourth-quarter fiscal 2023 non-GAAP earnings per share (EPS) of $1.2, down 5% on a year-over-year basis. However, the figure surpassed the Zacks Consensus Estimate by 5.3%.
Revenues came in at $547 million, up 8% year over year (up 6% at constant currency or cc). The top line missed the Zacks Consensus Estimate by 2.3%.
The year-over-year improvement in the top line was driven by steady demand for its product lifecycle management (PLM). Continued momentum in Onshape and Arena will further assist the company in the SaaS transition.
Top Line in Detail
Recurring revenues of $500.2 million rose 8% year over year. Perpetual licenses increased 4.7% to $8.2 million.
Revenues by License, Support and Services
License revenues (33.7% of total revenues) were $184.3 million, down 16.2% from the year-ago quarter’s figure.
Support and cloud services revenues (59.3%) of $324.1 million increased 29.1% year over year.
Professional services revenues (7%) were $38.1 million, up 3.3% year over year.
Revenues by Product Group
PLM and CAD businesses continue to witness healthy growth. In the fiscal fourth quarter, PLM revenues were $358 million, rising 17% year over year. CAD revenues were $189 million, down 7% year over year.
ARR Performance
Annualized recurring revenues (ARR) were $1.979 billion, up 26% year over year (up 23% at cc). The uptick was driven by strong performance across all divisions and geographies.
In the fiscal fourth quarter, PLM and CAD ARR were $1,188 million and $752 million, rising 36% and 12% year over year, respectively.
Operating Details
Non-GAAP gross margin decreased 170 basis points (bps) on a year-over-year basis to 81.6%.
Total operating expenses increased $43.2 million year over year to $309.6 million.
Operating income on a non-GAAP basis decreased 1.5% year over year to $201 million.
Operating margin on a non-GAAP basis decreased 350 bps on a year-over-year basis to 37%.
Balance Sheet & Cash Flow
As of Sep 30, 2023, cash, cash equivalents and marketable securities were $288.1 million compared with $281.5 million as of Jun 30, 2023.
Total debt, net of deferred issuance costs, was $1.695 billion as of Sep 30, 2023, compared with $1.738 billion as of Jun 30, 2023.
Cash provided by operating activities was $49.7 million compared with the prior-year quarter’s figure of $38.5 million.
The free cash flow was $44 million compared with $29 million reported in the year-ago quarter.
Fiscal 2024 Guidance
For fiscal 2024, ARR is expected to be $2.190-$2.250 billion, which indicates a rise of 11-14% year over year at cc.
Revenues for fiscal 2024 are projected in the range of $2.270-$2.360 billion, indicating a rise of 8-13% year over year.
For fiscal 2024, cash from operations is projected to be $745 million, indicating a rise of 22% on a year-over-year basis. The free cash flow is forecasted to be $725 million, suggesting a 23% increase year over year.
For the fiscal first quarter, PTC expects ARR between $1.995 and $2.010 billion. Cash from operations is projected to be $185 million, and free cash flow is forecasted to be $180 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -31.02% due to these changes.
VGM Scores
Currently, PTC Inc. has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, PTC Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
PTC Inc. is part of the Zacks Computer - Software industry. Over the past month, Blackbaud (BLKB - Free Report) , a stock from the same industry, has gained 5.3%. The company reported its results for the quarter ended September 2023 more than a month ago.
Blackbaud reported revenues of $277.63 million in the last reported quarter, representing a year-over-year change of +6.3%. EPS of $1.12 for the same period compares with $0.69 a year ago.
For the current quarter, Blackbaud is expected to post earnings of $1.08 per share, indicating a change of +58.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
Blackbaud has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.