PTC Inc. shares up 5.7% post Q3 earnings beat and new $2 billion share repurchase

From Nasdaq: 2024-12-06 11:31:24

PTC Inc. (PTC) shares have risen 5.7% since the last earnings report, outperforming the S&P 500. Q3 earnings beat estimates, with non-GAAP EPS at $1.54, up 28% YoY. Revenues reached $627 million, exceeding the Zacks Consensus Estimate. The company also announced a new $2 billion share repurchase authorization.

Recurring revenues rose to $582.4 million, while license revenues increased by 29.9% to $239.5 million. Support and cloud services revenues grew by 8.9% to $352.9 million. Professional services revenues were down 10.4% at $34.2 million. PLM and CAD businesses saw strong growth.

Annualized recurring revenues (ARR) reached $2.255 billion, up 14% YoY. PLM and CAD ARR were $1,387 million and $868 million, respectively, in Q4. Non-GAAP gross margin was 84.4%, with operating income up 37.8% YoY. Cash and cash equivalents were $266 million as of Sept. 30, 2024.

For Q1 fiscal 2025, PTC estimates revenues of $540-$570 million and non-GAAP EPS of 75 cents to 95 cents. Revenues for fiscal 2025 are projected to be $2,505-$2,605 billion. PTC projects 9-10% growth in ARR for fiscal 2025. Estimates for the stock have trended downward recently, with a Zacks Rank #3 (Hold).

Microsoft, also in the software industry, reported a 16% YoY increase in revenues to $65.59 billion for the last reported quarter. EPS was $3.30. For the current quarter, Microsoft is expected to post earnings of $3.14 per share. The stock has a Zacks Rank #3 (Hold) with a VGM Score of C.



Read more at Nasdaq: Why Is PTC Inc. (PTC) Up 5.7% Since Last Earnings Report?