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Citing sources familiar with the matter, Bloomberg added that the company was discussing such options with advisers. No decision has been made yet and Ansys could also remain independent.
Ansys' spokesperson, in an emailed statement, was quoted saying that mergers and acquisition rumors are not uncommon in the industry and the company would not like to comment on it.
Shares of ANSS are up 3.6% in the premarket trading session. In the past year, the stock has risen 27.6% compared with sub-industry’s growth of 54.5%.
Image Source: Zacks Investment Research
Demand for Simulation Software to Drive ANSS Performance
Ansys is a dominant name in the high-end design simulation software market. The company’s software solutions are used by most of the well-known manufacturing companies. Virtual prototyping instead of physical prototyping helps these companies save considerable amount of money. ANSS’ robust product portfolio and cross-domain offering will continue to drive customer base going ahead.
Ansys is gaining from strong demand across most of the sectors. In the automotive sector, higher demand for electric vehicles and advanced driver assistance systems or ADAS solutions is driving growth. It is likely to benefit from rapid growth in the high-tech industry, led by ongoing development in artificial intelligence and machine learning.
Aggressive acquisition strategy has also played a pivotal part in developing its business in the last few years. In June 2023, ANSS completed the acquisition of Diakopto, a provider of Electronic Design Automation solutions for integrated circuit development.
In January 2023, it announced that will acquire Engineering Simulation and Scientific Software’s subsidiary — Rocky DEM. This buyout will allow Ansys to offer its customers a broader range of engineering simulation software solutions by integrating Rocky's DEM tools and expertise.
In January 2023, it acquired the DYNAmore business from DYNAmore Holding GmbH. Other notable recent buyouts include Cullimore and Ring Technologies, Motor Design Limited and OnScale.
However, Ansys’ third-quarter performance was affected by restrictions on export to China. Management highlighted that these new restrictions are likely to elongate transaction cycles, causing delays in closing of certain deals in the fourth quarter. As a result, management now projects non-GAAP revenues in the range of $2,234-$2,284 million compared with the earlier prediction of $2,257-$2,327 million. We expect the metric to be $2.25 billion, suggesting 8.8% growth year over year.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS inched up 1.8% in the past 60 days to $3.86. BLKB’s long-term earnings growth rate is 23.4%. Blackbaud’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 10.6%. Shares of BLKB gained 45.5% in the past year.
The Zacks Consensus Estimate for 2023 is pegged at a loss of 9 cents per share for NETGEAR, which remained unchanged in the last 30 days. NTGR’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters while missing once. The average surprise was 127.5%. Shares of NTGR have declined 18% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved by 3.9% in the past 60 days to $8.08.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have jumped 40.5% in the past year.
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Ansys (ANSS) Reportedly Exploring Various Strategic Options
Ansys (ANSS - Free Report) is exploring strategic options including a possible sale amid takeover interest, per a report from Bloomberg.
Citing sources familiar with the matter, Bloomberg added that the company was discussing such options with advisers. No decision has been made yet and Ansys could also remain independent.
Ansys' spokesperson, in an emailed statement, was quoted saying that mergers and acquisition rumors are not uncommon in the industry and the company would not like to comment on it.
Shares of ANSS are up 3.6% in the premarket trading session. In the past year, the stock has risen 27.6% compared with sub-industry’s growth of 54.5%.
Image Source: Zacks Investment Research
Demand for Simulation Software to Drive ANSS Performance
Ansys is a dominant name in the high-end design simulation software market. The company’s software solutions are used by most of the well-known manufacturing companies. Virtual prototyping instead of physical prototyping helps these companies save considerable amount of money. ANSS’ robust product portfolio and cross-domain offering will continue to drive customer base going ahead.
Ansys is gaining from strong demand across most of the sectors. In the automotive sector, higher demand for electric vehicles and advanced driver assistance systems or ADAS solutions is driving growth. It is likely to benefit from rapid growth in the high-tech industry, led by ongoing development in artificial intelligence and machine learning.
ANSYS, Inc. Price and Consensus
ANSYS, Inc. price-consensus-chart | ANSYS, Inc. Quote
Aggressive acquisition strategy has also played a pivotal part in developing its business in the last few years. In June 2023, ANSS completed the acquisition of Diakopto, a provider of Electronic Design Automation solutions for integrated circuit development.
In January 2023, it announced that will acquire Engineering Simulation and Scientific Software’s subsidiary — Rocky DEM. This buyout will allow Ansys to offer its customers a broader range of engineering simulation software solutions by integrating Rocky's DEM tools and expertise.
In January 2023, it acquired the DYNAmore business from DYNAmore Holding GmbH. Other notable recent buyouts include Cullimore and Ring Technologies, Motor Design Limited and OnScale.
However, Ansys’ third-quarter performance was affected by restrictions on export to China. Management highlighted that these new restrictions are likely to elongate transaction cycles, causing delays in closing of certain deals in the fourth quarter. As a result, management now projects non-GAAP revenues in the range of $2,234-$2,284 million compared with the earlier prediction of $2,257-$2,327 million. We expect the metric to be $2.25 billion, suggesting 8.8% growth year over year.
ANSS currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Blackbaud (BLKB - Free Report) , NETGEAR (NTGR - Free Report) and Watts Water Technologies (WTS - Free Report) . Watts Water Technologies sports a Zacks Rank #1 (Strong Buy), while Blackbaud and NETGEAR carries a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Blackbaud’s 2023 EPS inched up 1.8% in the past 60 days to $3.86. BLKB’s long-term earnings growth rate is 23.4%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 10.6%. Shares of BLKB gained 45.5% in the past year.
The Zacks Consensus Estimate for 2023 is pegged at a loss of 9 cents per share for NETGEAR, which remained unchanged in the last 30 days. NTGR’s earnings outpaced the Zacks Consensus Estimate in three of the last four quarters while missing once. The average surprise was 127.5%. Shares of NTGR have declined 18% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved by 3.9% in the past 60 days to $8.08.
WTS’ earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 11.8%. Shares of WTS have jumped 40.5% in the past year.