PTC Set to Report Q2 Earnings: Here's What You Should Know

Zacks Equity Research

26 April 2024 at 12:54 pm·3-min read

PTC Inc PTC is slated to report second-quarter fiscal 2024 results on May 1.

The Zacks Consensus Estimate for revenues is pegged at $575.5 million, suggesting growth of 6.2% from a year ago. The consensus estimate for earnings is pegged at $1.23 per share, indicating an increase of 6% from the prior year.

The company has a trailing four-quarter earnings surprise of 6.2%, on average.

PTC Inc. Price and EPS Surprise

PTC Inc. price-eps-surprise | PTC Inc. Quote

Factors to Consider

Increasing 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. PTC continues to help industrial manufacturers drive closed-loop product lifecycle management across engineering, manufacturing quality and service.

Also, healthy demand for product lifecycle management (PLM) and computer-aided design solutions are expected to have contributed to PTC’s fiscal second-quarter revenues. PLM solution assists industrial companies to drive productivity and efficiency.

The acquisition of pure-systems is expected to have strengthened PTC's position in the rapidly growing Application Lifecycle Management market, especially benefiting industries like automotive, aerospace, and medical devices that prioritize software in their product designs.

The company’s free cash flow is likely to benefit from the subscription license business model and disciplined operational management. For the fiscal second quarter, PTC expects ARR to be between $2.050 billion and $2.065 billion. Cash from operations is projected to be $245 million and free cash flow is forecasted to be $240 million.

However, volatility in foreign exchange rates and a challenging global macroeconomic environment 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 -0.27% 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 a few stocks that you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat this quarter.

Chegg CHGG has an Earnings ESP of +3.55% and currently carries a Zacks Rank #2. CHGG is scheduled to report quarterly earnings on Apr 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CHGG’s to-be-reported quarter’s earnings and revenues is pegged at 24 cents per share and $174.1 million, respectively. Shares of CHGG have lost 62.2% in the past year.

QUALCOMM Incorporated QCOM has an Earnings ESP of +0.11% and currently carries a Zacks Rank of 2. QCOM is set to announce quarterly figures on May 1.

The Zacks Consensus Estimate for QCOM’s to-be-reported quarter’s earnings and revenues is pegged at $2.30 per share and $9.32 billion, respectively. Shares of QCOM have gained 41% in the past year.

Silicon Motion Technology Corporation SIMO has an Earnings ESP of +5.96% and presently carries a Zacks Rank #2. SIMO is slated to release quarterly numbers on May 2.

The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s earnings and revenues is pegged at 58 cents per share and $179.8 million, respectively. Shares of SIMO have gained 15.2% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

Silicon Motion Technology Corporation (SIMO) : Free Stock Analysis Report

Chegg, Inc. (CHGG) : Free Stock Analysis Report

PTC Inc. (PTC) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The Smart Investor
4 Singapore Blue-Chip Stocks You Can Buy and Hold Forever
We highlight four solid blue-chip names that you can buy and safely own for the rest of your life. The post 4 Singapore Blue-Chip Stocks You Can Buy and Hold Forever appeared first on The Smart Investor.
Barrons.com
Palantir Earnings Crush Estimates. Why Some Investors Are Selling on the News.
Palantir followed up its “bombastic” December quarter with even better results for the March quarter as the data analytics software company continued to gain traction with its artificial-intelligence tools, in particular with U.S. commercial customers. Palantir shares, which rallied 8.1% in Monday’s regular session, were down more than 14% to $21.56 in midday trading Tuesday. For the March quarter, Palantir posted revenue of $634 million, up 21% from a year ago, and ahead of both the company’s guidance range of $612 million to $616 million and Wall Street’s consensus of $615 million as tracked by FactSet.
GOBankingRates
Warren Buffett Invested $74 Billion in This Stock — Should You Invest Too?
Known as the Oracle of Omaha, Warren Buffett is one of the most successful investors of all time. He started his first investment partnership in 1956 with a few friends and family. An investment in...
Simply Wall St.
Is It Time To Consider Buying Hutchison Port Holdings Trust (SGX:NS8U)?
Hutchison Port Holdings Trust ( SGX:NS8U ), is not the largest company out there, but it received a lot of attention...
GOBankingRates
In 5 Years, These 8 Stocks Will Be More Valuable Than Amazon
Amazon stock shares are up a whopping 76% in the past year, as of May 6. What's more, the company reported strong first quarter earnings on April 30, with operating income of $15.3 billion, according...
Simply Wall St.
Is Thai Beverage Public Company Limited's (SGX:Y92) Recent Stock Performance Influenced By Its Financials In Any Way?
Thai Beverage's (SGX:Y92) stock is up by 3.2% over the past week. We wonder if and what role the company's financials...
Fortune
$3 trillion could be injected into the U.S. economy without any federal spending by tweaking this corner of the mortgage market, ‘Oracle of Wall Street’ says
"Rarely have I seen such a true win-win scenario for the government, Wall Street and the U.S. consumer."
The Edge Singapore
Singapore reviewing proposal by SVCA to revive local stock market: FT
'There has been a shift in thinking by the government that this is not just an SGX problem'
Yahoo Finance
Stock market today: Stocks climb as S&P 500 notches best 3-day run of 2024
Stocks rallied at the end of last week, getting a boost from a "Goldilocks" jobs report.
AFP News
Stocks rise on renewed hopes of US Fed rate cuts
Stock markets advanced Monday on renewed optimism that the US Federal Reserve will cut interest rates this year, as well as on a positive corporate earnings season."The Fed won't be in a position to cut its interest rates right away, but is given a higher chance to do so a bit earlier than what was expected at the start of last week," said Swissquote bank analyst Ipek Ozkardeskaya.
Yahoo Finance
Stock market today: Stocks edge higher, Disney sinks after earnings
Results from Disney took center stage as the media giant posted the first profit for a key part of its streaming business.
Reuters
Final Credit Suisse CEO, Ulrich Korner, to leave UBS, FT reports
UBS took over Credit Suisse in a government-backed rescue last year in what was the biggest merger of banks of systemic importance since the 2007-2009 financial crisis. Korner, who was appointed CEO of Credit Suisse during turbulent times in 2022, joined the board of UBS after the takeover. UBS is working to complete the merger of its legal entities with those of Credit Suisse by late May, the Financial Times said, citing people familiar with the plans.
Reuters
Gold gains on soft dollar, rate cut hopes
Gold prices climbed more than 1% on Monday, as the U.S. dollar weakened after softer-than-expected U.S. jobs data fueled expectations of potential interest rate cuts by the Federal Reserve later this year. Spot gold rose 1% to $2,324.94 per ounce by 2:00 p.m. ET (1800 GMT). "The downside that we've seen over the last few weeks might actually be running out of steam, opening (the) door for gold prices to resume their upward trajectory," said Daniel Ghali, commodity strategist at TD Securities.
Yahoo Finance
The biggest risk to investing in 'Magnificent 7' stocks like Nvidia and Amazon, according to top CEOs
It's good practice for investors to think beyond the "Magnificent Seven" stocks, the CEOs of Apollo and Avenue Capital Group said.
Reuters
EMERGING MARKETS-Asian stocks extend gains on Fed rate cut optimism, FX down on firm dollar
(.) * South Korean shares jump as much as 2.2% * Taiwan's April CPI due later in the day * Malaysia rate decision due on Thursday By Ayushman Ojha May 7 (Reuters) - Most Asian stock markets extended gains on Tuesday on the back of renewed bets for U.S. rate cuts after last week's cooler-than-expected jobs data, while the region's currencies were subdued as the dollar ticked higher. Regional markets are still cautious about the future path of U.S. interest rates as they have not seen a strengthening in Asian currencies even with U.S. yields falling, said Lloyd Chan, senior currency analyst at MUFG Bank. Taiwan is scheduled to report its April inflation numbers later on Tuesday.
Simply Wall St.
3 Growth Companies With High Insider Ownership And At Least 12% Revenue Growth
Amid a buoyant U.S. stock market, bolstered by robust first-quarter earnings and the anticipation of interest rate cuts, investors are keenly observing various factors that could influence their investment decisions. In this context, growth companies with high insider ownership and significant revenue growth present an interesting opportunity for those looking to align with the confidence insiders are showing in their own companies.
Reuters
GLOBAL MARKETS-Asia shares rally on Fed cut bets; yen pares gains
Asian stocks rose on Monday on renewed bets that the Federal Reserve would likely ease rates this year, while the yen weakened after a strong surge last week from Tokyo's suspected currency intervention. Trading was thinned in Asia with Japan out for a holiday, though markets in mainland China got off to an upbeat start after returning from an extended break. MSCI's broadest index of Asia-Pacific shares outside Japan edged more than 0.5% higher, while China's blue-chip index gained 1.4%.
GOBankingRates
I’m a Financial Advisor: These Are the 6 Biggest Money Mistakes People Make in Their 50s
Financial planning is important at all stages of your adult life, but it's doubly so once you reach your 50s. It's around this point where many people start thinking more seriously about retirement....
Benzinga
AMD Positions for AI Leadership with Expanded Portfolio, Quadrupled R&D Investment Ahead of Major Computex Announcements
Advanced Micro Devices, Inc (NASDAQ:AMD) is strategically preparing to address the growing demand for AI computing by leveraging its extensive product range. CTO Mark Papermaster emphasized AMD’s robust portfolio of compute engines, strong relationships with customers across diverse markets, and open software capabilities. He reflected on AMD’s 55-year history, highlighting its shift to a modular IP portfolio unified by a comprehensive AI software stack, which will enable the company to adapt mo
Barrons.com
Buffett’s Cash Conundrum Is a Warning for Markets, and 5 Other Things to Know Before Markets Open
Disney to report earnings after thwarting activist investors, Uber, Lyft, and Instacart earnings offer a window on consumer, and other news to start your day.

Straits Times Index

S&P 500

Dow

Nasdaq

Bitcoin USD

CMC Crypto 200

FTSE 100

Gold

Crude Oil

10-Yr Bond

Nikkei

Hang Seng

FTSE Bursa Malaysia

Jakarta Composite Index

PSE Index

PTC Inc. Price and EPS Surprise

Factors to Consider

What Our Model Says

Stocks to Consider

Latest stories