Ansys (ANSS) & BMW Partner to Launch AVxcelerate Autonomy
Ansys ANSS has launched a cloud-native system developed with BMW Group — AVxcelerate Autonomy. This technology significantly cuts costs and time-to-compliance for advanced driver assistance systems and autonomous vehicle (AV) compliance.
The technology will assist BMW in safety validation for autonomous vehicles through features like extensive virtual testing that simulate real-world scenarios. It uses a powerful cloud-optimized exploration algorithm that significantly accelerates sensitivity analyses compared to traditional methods.
Furthermore, the AVxcelerate Autonomy also replaces physical tests with virtual simulations, which, in turn, significantly reduces development time and offers a substantial cost and time reduction for compliance.
ANSYS, Inc. Price and Consensus
ANSYS, Inc. price-consensus-chart | ANSYS, Inc. Quote
The technology is designed around an MBSE framework and follows the Association for Standardization of Automation and Measuring Systems openX standards. AVxcelerate Autonomy is likely to receive ISO 26262 certification, enabling workflows for L3 and above certification.
Per a report from Mordor Intelligence, the electromagnetic simulation software market size is estimated at $1.24 billion in 2023 and is expected to reach $2.01 billion by 2028, witnessing a CAGR of 10.14% from 2023 to 2028.
Ansys develops and globally markets engineering simulation software and services widely used by engineers, designers, researchers and students across a spectrum of industries and academia.
In November, the company announced that its simulation solutions are being leveraged by a leading nuclear technology company — NuScale Power. Ansys will help NuScale Power develop the NPM, which is the first small modular reactor approved by the U.S. Nuclear Regulatory Commission.
Prior to that, the company announced that its simulation solutions are being leveraged by uPI Semiconductor Corp to enhance the efficiency of its product packaging processes and achieve a two-fold improvement in thermal reliability.
ANSS now projects 2023 non-GAAP revenues in the range of $2,234-$2,284 million compared with the earlier prediction of $2,257-$2,327 million. Management expects non-GAAP operating margin between 41% and 42%.
Non-GAAP earnings per share (EPS) are anticipated to be in the range of $8.34-$8.75 compared with the previous guidance of $8.39-$8.88.
ANSS currently carries a Zacks Rank #3 (Hold). Shares of ANSYS have gained 23.3% in the past year compared with the sub-industry’s growth of 52.5%.
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Stocks to Consider
Some better-ranked stocks in the broader technology space are Pegasystems PEGA, Flex FLEX and Watts Water Technologies WTS. Pegasystems and Flex presently sport a Zacks Rank #1 (Strong Buy), whereas Watts Water Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Pegasystems’ 2023 EPS has improved 21.2% in the past 60 days to $1.77. PEGA delivered an average earnings surprise of 1,250.2% in the trailing four quarters. Shares of PEGA have soared 50.2% in the past year.
The Zacks Consensus Estimate for Flex’s fiscal 2024 EPS has increased 3.6% in the past 60 days to $2.56. Flex’s long-term earnings growth rate is 12.4%.
Flex’s earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 11%. Shares of the company have risen 20% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 3.9% in the past 60 days to $8.08. Watts Water’s long-term earnings growth rate is 7.8%.
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