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.
ANSYS at 52-Week High on Growing Portfolio, Collaborations
Read MoreHide Full Article
Share price of ANSYS Inc. (ANSS - Free Report) rallied to a new 52-week high of $132.07, eventually closing a bit lower at $132.01 on Sep 12. The outperformance can be attributed to the company’s expanding product portfolio and consistent execution, which are driving top-line growth and profitability.
We note that ANSYS has beaten the Zacks Consensus Estimate for earnings in all of the trailing four quarters with an average positive surprise of 5.02%.
Last quarter, earnings increased 6.5% year over year to 99 cents on revenues of $264.4 million, up 13% at constant currency. ANSYS also raised its fiscal 2017 guidance.
Moreover, the stock has returned 42.7% year to date, substantially outperforming the industry it belongs to. ANSYS has a market cap of $10.89 billion.
ANSYS is a dominant player in the high-end design simulation software market and its expanding portfolio has been a key catalyst. The company recently unveiled ANSYS Discovery Live that supports fluids, structural and thermal simulation applications.
The software enables engineers to experiment with design ideas and see instant feedback. Notably, the combination of NVIDIA’s (NVDA - Free Report) graphic processing units (GPUs) and ANSYS Discovery Live simulation software makes result calculations a thousand times faster compared with traditional methods.
Moreover, acquisitions like Computational Engineering International (CEI), SpaceClaim, Reaction Design and Evolutionary Engineering have expanded the company’s expertise in processing and analysis of simulation data, 3D modelling, chemistry simulation and cloud-based composite analysis and optimization technology.
These have eventually expanded ANSYS’s total addressable market (TAM). The company can now address the needs of diverse industries like IoT, next-gen 5G product designs, autonomous vehicle, mobile products as well as high-performance chips for advanced driver assistance systems (ADAS). Moreover, growing demand for energy efficient products is also a key catalyst.
Additionally, collaborations with leading vendors like Autodesk (ADSK - Free Report) , Synopsys (SNPS - Free Report) and NVIDIA are expected to drive demand for the company’s products.
However, declining perpetual license revenues will hurt top-line growth at least in the near term. Moreover, weakness in Europe and adverse foreign currency exchange rates are other major concerns.
Estimate Revisions
The Zacks Consensus Estimate for fiscal 2018 and fiscal 2019 has been steady at $3.86 and $4.14 over the last 30 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
ANSYS at 52-Week High on Growing Portfolio, Collaborations
Share price of ANSYS Inc. (ANSS - Free Report) rallied to a new 52-week high of $132.07, eventually closing a bit lower at $132.01 on Sep 12. The outperformance can be attributed to the company’s expanding product portfolio and consistent execution, which are driving top-line growth and profitability.
We note that ANSYS has beaten the Zacks Consensus Estimate for earnings in all of the trailing four quarters with an average positive surprise of 5.02%.
Last quarter, earnings increased 6.5% year over year to 99 cents on revenues of $264.4 million, up 13% at constant currency. ANSYS also raised its fiscal 2017 guidance.
Moreover, the stock has returned 42.7% year to date, substantially outperforming the industry it belongs to. ANSYS has a market cap of $10.89 billion.
Currently, ANSYS holds a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Factors
ANSYS is a dominant player in the high-end design simulation software market and its expanding portfolio has been a key catalyst. The company recently unveiled ANSYS Discovery Live that supports fluids, structural and thermal simulation applications.
ANSYS, Inc. Revenue (TTM)
ANSYS, Inc. Revenue (TTM) | ANSYS, Inc. Quote
The software enables engineers to experiment with design ideas and see instant feedback. Notably, the combination of NVIDIA’s (NVDA - Free Report) graphic processing units (GPUs) and ANSYS Discovery Live simulation software makes result calculations a thousand times faster compared with traditional methods.
Moreover, acquisitions like Computational Engineering International (CEI), SpaceClaim, Reaction Design and Evolutionary Engineering have expanded the company’s expertise in processing and analysis of simulation data, 3D modelling, chemistry simulation and cloud-based composite analysis and optimization technology.
These have eventually expanded ANSYS’s total addressable market (TAM). The company can now address the needs of diverse industries like IoT, next-gen 5G product designs, autonomous vehicle, mobile products as well as high-performance chips for advanced driver assistance systems (ADAS). Moreover, growing demand for energy efficient products is also a key catalyst.
Additionally, collaborations with leading vendors like Autodesk (ADSK - Free Report) , Synopsys (SNPS - Free Report) and NVIDIA are expected to drive demand for the company’s products.
However, declining perpetual license revenues will hurt top-line growth at least in the near term. Moreover, weakness in Europe and adverse foreign currency exchange rates are other major concerns.
Estimate Revisions
The Zacks Consensus Estimate for fiscal 2018 and fiscal 2019 has been steady at $3.86 and $4.14 over the last 30 days.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>