What to Expect Ahead of Aspen's (AZPN) Q2 Earnings Release
Aspen Technology AZPN is scheduled to report second-quarter fiscal 2024 results on Feb 6.
The Zacks Consensus Estimate for earnings is pegged at $1.49 per share compared with the prior quarter’s figure of 35 cents per share. The consensus mark for revenues stands at $259.7 million, suggesting an increase of 6.9% from the prior-year quarter.
Aspen Technology, Inc. Price and EPS Surprise
Aspen Technology, Inc. price-eps-surprise | Aspen Technology, Inc. Quote
Factors to Note
The company’s performance in the fiscal second quarter is likely to have benefited from solid demand momentum across various markets. The company is expected to have benefited from strong demand in upstream and midstream energy owing to higher oil prices and rising upstream capital expenditure investments, especially from national oil companies.
The company is likely to have gained from positive trends in the refining market, such as increasing demand for fuels and capacity rationalization in Europe and North America. The company stands to gain from positive trends in Engineering and Construction (E&C), such as increasing positive capital expenditure trends in both traditional energy and energy transition projects.
Apart from this, the company is likely to have gained from the Transmission & Distribution sector, which continues to grow owing to rising industrial and consumer demand for power, the quick uptake of renewable energy sources, and substantial government support.
However, the company’s performance is likely to be affected as chemical sector customers are minimizing costs and investments to support margins amid weaker demand. Stiff competition and supply-chain disruptions remain major concerns.
Recent Developments
On Nov 27, 2023, the company announced a collaboration with EY to meet the growing demand in industrial and energy markets and help clients achieve their sustainability targets. The partnership combines AspenTech's solutions for managing emissions reduction and energy efficiency, streamlining supply chains, enhancing asset lifecycles, enhancing tax capabilities, and assisting utility system orchestration with EY's technology and services.
On Nov 14, 2023, the company announced enhanced performance and sustainability features in its asset optimization solutions portfolio — aspenONE. The update includes design, operations, and maintenance features. The new aspenONE updates help customers to develop and implement reliable, impactful sustainability solutions.
On Nov 6, 2023, the company expanded its partnership with OMV Group to support the global integrated oil and gas firm's energy transition efforts and its journey toward reaching net zero ambitions.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Aspen Technology 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.
Aspen Technology has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some other stocks you may consider, as our model shows that these too have the right combination of elements to beat on earnings this reporting cycle.
Expedia Group EXPE has an Earnings ESP of +5.00% and a Zacks Rank #3 at present. Expedia is scheduled to release its fourth-quarter 2023 results on Feb 8. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for EXPE’s to-be-reported quarter’s earnings and revenues is pegged at $1.67 per share and $2.88 billion, respectively. Shares of EXPE have gained 27.6% in the past year.
Gartner IT has an Earnings ESP of +0.81% and a Zacks Rank #1 at present. Gartner is scheduled to release its fourth-quarter 2023 results on Feb 6.
The Zacks Consensus Estimate for IT’s to-be-reported quarter’s earnings and revenues is pegged at $2.78 per share and $1.59 billion, respectively. Shares of IT have gained 36.6% in the past year.
Shopify Inc SHOP has an Earnings ESP of +1.02% and currently sports a Zacks Rank #1. SHOP is scheduled to report quarterly earnings on Feb 13.
The Zacks Consensus Estimate for SHOP’s to-be-reported quarter’s earnings and revenues is pegged at 31 cents per share and $2.07 billion, respectively. Shares of SHOP have gained 44.6% in the past year.
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Expedia Group, Inc. (EXPE) : Free Stock Analysis Report
Gartner, Inc. (IT) : Free Stock Analysis Report
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Shopify Inc. (SHOP) : Free Stock Analysis Report
