PTC Earnings: What To Look For From PTC

PTC Earnings: What To Look For From PTC

Engineering and design software provider PTC (NASDAQ:PTC) will be reporting results tomorrow after the bell. Here's what to look for.

PTC beat analysts' revenue expectations by 4.6% last quarter, reporting revenues of $603.1 million, up 11.2% year on year. It was a slower quarter for the company, with full-year revenue guidance missing analysts' expectations.

Is PTC a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting PTC's revenue to decline 1.6% year on year to $533.8 million, a reversal from the 17.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.96 per share.

PTC Total Revenue

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. PTC has missed Wall Street's revenue estimates twice over the last two years.

Looking at PTC'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. PTC is down 2.1% during the same time and is heading into earnings with an average analyst price target of $203 (compared to the current share price of $177.22).

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