Product design software company PTC (NASDAQ: PTC) will be reporting results this Wednesday after market close. Here’s what investors should know.
PTC beat analysts’ revenue expectations last quarter, reporting revenues of $685.8 million, up 21.4% year on year. It was a very strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Is PTC a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting PTC’s revenue to grow 12% year on year, improving from the 5.5% increase it recorded in the same quarter last year.
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 rarely misses Wall Street’s revenue estimates.
Looking at PTC’s peers in the vertical software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Cadence Design Systems delivered year-on-year revenue growth of 18.7%, beating analysts’ expectations by 1.9%, and Dolby Laboratories reported revenues up 7.1%, topping estimates by 2.8%. Cadence Design Systems traded down 3.3% following the results while Dolby Laboratories was also down 10.4%.
Read our full analysis of Cadence Design Systems’s results here and Dolby Laboratories’s results here.
There has been positive sentiment among investors in the vertical software segment, with share prices up 11.6% on average over the last month. PTC is down 3.6% during the same time and is heading into earnings with an average analyst price target of $184.16 (compared to the current share price of $139.23).
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