Yahoo Finance Altair (ALTR) Enhances 3D Printing Capabilities With HP Deal
Altair Engineering Inc. ALTR entered into an agreement with HP Inc to enhance the Altair Material Data Center. This collaboration will provide customers with access to accurate material property data. This enhancement helps bridge the gap between the design and production of 3D-printed parts, addressing a common challenge in the industry.
Per the agreement, HP will provide Altair with proprietary material information. This will enable designers, engineers and scientists to browse, search and compare materials in a standalone application or through their simulation and optimization tools. The collaboration will help overcome traditional barriers to 3D printing adoption and ultimately assist customers in better-designing parts for Multi Jet Fusion and Metal Jet printers.
Engineers using the Altair Material Data Center can now leverage HP material data to design efficient parts, conduct structural analysis with finite element analysis (FEA) and predict and address manufacturing defects during design and simulation. Users of Altair Inspire Print3D will also benefit from the accelerated creation and optimization of structurally efficient additively manufactured parts through fast and accurate design and process simulation tools for metal binder jetting.
This collaboration with HP brings significant advancements to Altair's robust databases and solutions. This partnership will help organizations worldwide develop better products, shorten timelines and reduce waste by minimizing the prototyping process.
Focus on Operational Efficiency Bodes Well
Altair’s shares have gained 13.7% in the past six months compared with the Zacks Engineering - R and D Services industry’s 22.4% rise. Although the stock has underperformed the industry, the company is likely to benefit from its robust product portfolio, featuring sustainable and disruptive innovations. Altair’s products, services and business models have been driving market share growth. The company emphasizes enhancing operational efficiency through strategic acquisitions and partnerships.
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In April 2024, ALTR acquired Cambridge Semantics, a data fabric technology company. This acquisition brings advanced knowledge graph technology, which is critical for generative AI applications, to ALTR's platform. Cambridge Semantics' technologies will integrate into Altair RapidMiner, enhancing data governance, data virtualization and data discovery capabilities. This combination will help customers build advanced analytics ecosystems and incorporate AI into business operations.
During first-quarter 2024, ALTR's non-GAAP gross margin expanded 140 basis points (bps) year over year to 83.3%. The upside was driven by a higher mix of software revenue and improved standalone software margins. Adjusted EBITDA margin was 26.5%, up 60 bps from 25.9% in the year-ago quarter. Considering the impact of changes in foreign currency exchange rates, the company expects adjusted EBITDA margin to be in the range of 21.2-22.1% for 2024, suggesting an increase from 21.1% in 2023.
Zacks Rank & Key Picks
Currently, Altair carries a Zacks Rank #3 (Hold).
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Gates Industrial Corporation plc GTES presently carries a Zacks Rank #2. GTES has a trailing four-quarter earnings surprise of 14.9%, on average. Shares of GTES have gained 23.3% in the past year.
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Altair Engineering Inc. (ALTR) : Free Stock Analysis Report
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