Yahoo Finance ANSYS (ANSS) Q2 Earnings Report Preview: What To Look For
Engineering simulation software provider Ansys (NASDAQ:ANSS) will be reporting earnings tomorrow afternoon. Here's what you need to know.
ANSYS missed analysts' revenue expectations by 15.9% last quarter, reporting revenues of $466.6 million, down 8.4% year on year. It was a weak quarter for the company, with a decline in its gross margin and a miss of analysts' average contract value estimates.
Is ANSYS a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting ANSYS's revenue to grow 11.9% year on year to $555.8 million, improving from the 4.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.94 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. ANSYS has missed Wall Street's revenue estimates twice over the last two years.
Looking at ANSYS's peers in the vertical software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Cadence delivered year-on-year revenue growth of 8.6%, beating analysts' expectations by 1.7%, and Agilysys reported revenues up 13.3%, falling short of estimates by 1.4%. Cadence traded down 1.6% following the results while Agilysys was also down 4.6%.
Read our full analysis of Cadence's results here and Agilysys's results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 2.6% on average over the last month. ANSYS is down 3.6% during the same time and is heading into earnings with an average analyst price target of $348 (compared to the current share price of $309.51).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.
