PTC Set to Report Q3 Earnings: Here's What You Should Know
PTC Inc PTC is slated to report third-quarter fiscal 2023 results on Jul 26.
The Zacks Consensus Estimate for revenues is pegged at $530.4 million, suggesting growth of 14.7% from the year-ago quarter’s reported figure. The consensus estimate for earnings is pegged at $1.01 per share, indicating a year-over-year increase of 4.1%.
The company has a trailing four-quarter earnings surprise of 2.1%, on average.
PTC Inc. Price and EPS Surprise
PTC Inc. price-eps-surprise | PTC Inc. Quote
Factors to Consider
Continued strong demand for products, especially digital transformation and software-as-a-service or SaaS, across all segments and regions is expected to have driven PTC’s revenue performance in the to-be-reported quarter. Subscription-centric model and disciplined operational management are likely to have favored overall performance.
Strength in the industrial Internet of Things solutions, and healthy demand for product lifecycle management (PLM) and computer-aided design solutions are expected to have contributed to PTC’s fiscal third-quarter top line. A strong uptick in demand for Creo, Windchill platforms and ThingWorx DPM is likely to have acted as a tailwind.
Synergies from the recent buyouts of ServiceMax and Codebeamer are likely to have aided the company's performance. In January 2023, PTC completed the acquisition of ServiceMax, a cloud-based field service management (FSM) software company, for $1.46 billion. It expects the integration of ServiceMax to strengthen its closed loop PLM solutions by providing enterprise asset management and FSM companies with monitoring and servicing product record after the product moves into customer use.
For the fiscal third quarter, PTC expects ARR to be between $1.845 billion and $1.855 billion. Cash from operations is projected to be $160 million and free cash flow is forecasted to be $155 million.
However, inflation and challenging global macroeconomic environment, especially softness in bookings from China are expected to have weighed on the company’s performance. Also, increasing research and development costs to fend off competition are likely to have acted as headwinds.
What Our Model Says
Our proven model does not conclusively 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.
PTC has an Earnings ESP of 0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
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 quarter.
Tyler Technologies TYL has an Earnings ESP of +0.54% and currently sports a Zacks Rank #1. TYL is scheduled to report quarterly numbers on Jul 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TYL’s to-be-reported quarter’s earnings and revenues is pegged at $1.86 per share and $490.7 million, respectively. Shares of TYL have rallied 10.3% in the past year.
Chipotle Mexican Grill CMG has an Earnings ESP of +0.70% and a Zacks Rank #2. CMG is scheduled to report earnings on Jul 26.
The Zacks Consensus Estimate for CMG’s to-be-reported quarter’s earnings and revenues is pegged at $12.25 per share and $2.52 billion, respectively. Shares of CMG have gained 57.9% in the past year.
Meta Platforms META has an Earnings ESP of +5.83% and presently carries a Zacks Rank #2. META is set to report second-quarter 2023 results on Jul 26.
The Zacks Consensus Estimate for META’s to-be-reported quarter’s earnings and revenues is pegged at $2.87 per share and $30.91 billion, respectively. Shares of META have surged 76.6% in the past year
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Chipotle Mexican Grill, Inc. (CMG) : Free Stock Analysis Report
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Meta Platforms, Inc. (META) : Free Stock Analysis Report
