PTC Inc. (PTC shares ended the last trading session 17.6% higher at $210.47. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.7% gain over the past four weeks.
The increase in share price can be attributed to the potential buyout of the company by Autodesk, as reported by Bloomberg. Both PTC and Autodesk are strong contenders in the software space, with similar product lineups in computer-aided design (CAD) and product lifecycle management (PLM) solutions.
PTC remains focused on mission-critical products and emphasizes the importance of verticalized go-to-market strategies to effectively meet customer needs. Its strong free cash flow generation positions it well for long-term investments. Management has increased its free cash flow forecast for fiscal 2025 to $840-$850 million, up from the previous estimate of $835-$850 million, reflecting a growth of 14-16%. Revenues for fiscal 2025 are now projected in the range of $2,445 to $2,565 million, indicating a rise of 6-12% year over year. The prior view was $2,430 million to $2,530 million. Non-GAAP EPS is now estimated in the $5.80-$6.55 band, suggesting a rise of 14-29%. Earlier, PTC predicted the metric to be $5.30 to $6.
We believe that the company’s expanding product portfolio will help it win frequent orders and new customers from emerging IoT and AR/VR markets. It plans to enhance its offerings by adding generative AI into its products.
This product development software maker is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of +24.5%. Revenues are expected to be $582.38 million, up 12.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For PTC Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PTC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
PTC Inc. belongs to the Zacks Computer - Software industry. Another stock from the same industry, Simulations Plus (SLP), closed the last trading session 0.1% higher at $17.53. Over the past month, SLP has returned -35.7%.
For Simulations Plus, the consensus EPS estimate for the upcoming report has changed -22.9% over the past month to $0.26. This represents a change of +36.8% from what the company reported a year ago. Simulations Plus currently has a Zacks Rank of #5 (Strong Sell).
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PTC Inc. (PTC) Soars 17.7%: Is Further Upside Left in the Stock?
PTC Inc. (PTC shares ended the last trading session 17.6% higher at $210.47. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 4.7% gain over the past four weeks.
The increase in share price can be attributed to the potential buyout of the company by Autodesk, as reported by Bloomberg. Both PTC and Autodesk are strong contenders in the software space, with similar product lineups in computer-aided design (CAD) and product lifecycle management (PLM) solutions.
PTC remains focused on mission-critical products and emphasizes the importance of verticalized go-to-market strategies to effectively meet customer needs. Its strong free cash flow generation positions it well for long-term investments. Management has increased its free cash flow forecast for fiscal 2025 to $840-$850 million, up from the previous estimate of $835-$850 million, reflecting a growth of 14-16%. Revenues for fiscal 2025 are now projected in the range of $2,445 to $2,565 million, indicating a rise of 6-12% year over year. The prior view was $2,430 million to $2,530 million. Non-GAAP EPS is now estimated in the $5.80-$6.55 band, suggesting a rise of 14-29%. Earlier, PTC predicted the metric to be $5.30 to $6.
We believe that the company’s expanding product portfolio will help it win frequent orders and new customers from emerging IoT and AR/VR markets. It plans to enhance its offerings by adding generative AI into its products.
This product development software maker is expected to post quarterly earnings of $1.22 per share in its upcoming report, which represents a year-over-year change of +24.5%. Revenues are expected to be $582.38 million, up 12.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For PTC Inc., the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on PTC going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
PTC Inc. belongs to the Zacks Computer - Software industry. Another stock from the same industry, Simulations Plus (SLP), closed the last trading session 0.1% higher at $17.53. Over the past month, SLP has returned -35.7%.
For Simulations Plus, the consensus EPS estimate for the upcoming report has changed -22.9% over the past month to $0.26. This represents a change of +36.8% from what the company reported a year ago. Simulations Plus currently has a Zacks Rank of #5 (Strong Sell).