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Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
For the quarter, PTC anticipates revenues to be between $598 million and $648 million. Non-GAAP earnings per share (EPS) are expected to be between $1.30 and $1.66.
The Zacks Consensus Estimate for revenues is pegged at $620.5 million, indicating an increase of 13.5% from the year-ago reported number. The consensus estimate for earnings is pegged at $1.43 per share, up 19.2% from the prior-year level.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met the same in the other one, delivering an average surprise of 9.3%. In the past year, shares of PTC have risen 25.3% compared with the sub-industry’s growth of 19.2%.
Image Source: Zacks Investment Research
Factors Shaping PTC’s Upcoming Q4 Results
PTC's core business segments — CAD (Computer-Aided Design) and PLM (Product-Lifecycle Management) solutions — continue to be major revenue drivers and are likely to have cushioned its performance in the to-be-reported quarter. Healthy adoption of its premium PLM product, Windchill software and Creo and other CAD tools among various sectors bodes well.
The increasing adoption of its Service Lifecycle Management (SLM) and Application Lifecycle Management (ALM) solutions, which are driven by ServiceMax and Codebeamer, respectively, is likely to have acted as additional tailwinds.
PTC’s investments in emerging technologies such as IoT (Internet of Things), AR (Augmented Reality) and AI (Artificial Intelligence) align with industry trends. Increasing recurring revenues as well as focus on go-to-market strategies are positives.
Apart from these, the shift toward a subscription-based model and efforts to enhance operational discipline has been driving cash flow. For the fiscal fourth quarter, PTC expects ARR between $2.20 billion and $2.22 billion. Cash from operations is anticipated to be $88 million and free cash flow is predicted to be $83 million.
For fiscal 2024, ARR is expected to be in the range of $2.2-$2.22 billion, which indicates a rise of 11-12% year over year at cc. Revenues for fiscal 2024 are predicted to be in the band of $2.27-$2.32 billion, indicating a rise of 8-11% year over year.
Nonetheless, adverse foreign currency movement and sluggish demand environment are likely to have acted as headwinds. Also, increasing research and development costs to fend off stiff competition in PLM and CAD space are likely to have weighed on margin performance.
What Our Model Says About PTC
Our proven model does not predict an earnings beat for PTC 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. This is not the case here.
PTC has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. 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 season.
SHOP is scheduled to report quarterly earnings on Nov.12. The Zacks Consensus Estimate for SHOP’s to-be-reported quarter’s earnings is pegged at 27 cents. The consensus estimate for revenues is pegged at $2.11 billion. Shares of SHOP have gained 29.8% in the past year.
Yelp Inc. (YELP - Free Report) presently has an Earnings ESP of +15.48% and a Zacks Rank #1. YELP is scheduled to report quarterly numbers on Nov. 7. The Zacks Consensus Estimate for YELP’s to-be-reported quarter’s earnings and revenues is pegged at 40 cents per share and $362.1 million, respectively. Shares of YELP have lost 23.9% in the past year.
Fortinet, Inc. (FTNT - Free Report) has an Earnings ESP of +1.25% and a Zacks Rank #2 at present. Fortinet is scheduled to report quarterly figures on Nov. 7. The Zacks Consensus Estimate for FTNT’s to-be-reported quarter’s earnings and revenues is pegged at 51 cents per share and $1.48 billion, respectively. Shares of FTNT have increased 57.3% in the past year.
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PTC to Report Q4 Earnings: Here's What Investors Should Know
PTC Inc. (PTC - Free Report) is scheduled to report fourth-quarter fiscal 2024 results on Nov. 6.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
For the quarter, PTC anticipates revenues to be between $598 million and $648 million. Non-GAAP earnings per share (EPS) are expected to be between $1.30 and $1.66.
The Zacks Consensus Estimate for revenues is pegged at $620.5 million, indicating an increase of 13.5% from the year-ago reported number. The consensus estimate for earnings is pegged at $1.43 per share, up 19.2% from the prior-year level.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met the same in the other one, delivering an average surprise of 9.3%. In the past year, shares of PTC have risen 25.3% compared with the sub-industry’s growth of 19.2%.
Image Source: Zacks Investment Research
Factors Shaping PTC’s Upcoming Q4 Results
PTC's core business segments — CAD (Computer-Aided Design) and PLM (Product-Lifecycle Management) solutions — continue to be major revenue drivers and are likely to have cushioned its performance in the to-be-reported quarter. Healthy adoption of its premium PLM product, Windchill software and Creo and other CAD tools among various sectors bodes well.
The increasing adoption of its Service Lifecycle Management (SLM) and Application Lifecycle Management (ALM) solutions, which are driven by ServiceMax and Codebeamer, respectively, is likely to have acted as additional tailwinds.
PTC’s investments in emerging technologies such as IoT (Internet of Things), AR (Augmented Reality) and AI (Artificial Intelligence) align with industry trends. Increasing recurring revenues as well as focus on go-to-market strategies are positives.
PTC Inc. Price and EPS Surprise
PTC Inc. price-eps-surprise | PTC Inc. Quote
Apart from these, the shift toward a subscription-based model and efforts to enhance operational discipline has been driving cash flow. For the fiscal fourth quarter, PTC expects ARR between $2.20 billion and $2.22 billion. Cash from operations is anticipated to be $88 million and free cash flow is predicted to be $83 million.
For fiscal 2024, ARR is expected to be in the range of $2.2-$2.22 billion, which indicates a rise of 11-12% year over year at cc. Revenues for fiscal 2024 are predicted to be in the band of $2.27-$2.32 billion, indicating a rise of 8-11% year over year.
Nonetheless, adverse foreign currency movement and sluggish demand environment are likely to have acted as headwinds. Also, increasing research and development costs to fend off stiff competition in PLM and CAD space are likely to have weighed on margin performance.
What Our Model Says About PTC
Our proven model does not predict an earnings beat for PTC 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. This is not the case here.
PTC has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell) at present. 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 season.
Shopify Inc (SHOP - Free Report) currently has an Earnings ESP of +5.78% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
SHOP is scheduled to report quarterly earnings on Nov.12. The Zacks Consensus Estimate for SHOP’s to-be-reported quarter’s earnings is pegged at 27 cents. The consensus estimate for revenues is pegged at $2.11 billion. Shares of SHOP have gained 29.8% in the past year.
Yelp Inc. (YELP - Free Report) presently has an Earnings ESP of +15.48% and a Zacks Rank #1. YELP is scheduled to report quarterly numbers on Nov. 7. The Zacks Consensus Estimate for YELP’s to-be-reported quarter’s earnings and revenues is pegged at 40 cents per share and $362.1 million, respectively. Shares of YELP have lost 23.9% in the past year.
Fortinet, Inc. (FTNT - Free Report) has an Earnings ESP of +1.25% and a Zacks Rank #2 at present. Fortinet is scheduled to report quarterly figures on Nov. 7. The Zacks Consensus Estimate for FTNT’s to-be-reported quarter’s earnings and revenues is pegged at 51 cents per share and $1.48 billion, respectively. Shares of FTNT have increased 57.3% in the past year.