PTC (PTC) Q2 Earnings Report Preview: What To Look For

Engineering and design software provider PTC (NASDAQ:PTC) will be reporting results this Wednesday afternoon. Here’s what to look for.

PTC beat analysts’ revenue expectations by 5% last quarter, reporting revenues of $636.4 million, up 5.5% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but EPS guidance for next quarter missing analysts’ expectations significantly.

Is PTC a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting PTC’s revenue to grow 12.5% year on year to $583.3 million, a reversal from the 4.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.21 per share.

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 has missed Wall Street’s revenue estimates three times over the last two years.

Looking at PTC’s peers in the vertical software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Cadence delivered year-on-year revenue growth of 20.2%, beating analysts’ expectations by 1.8%, and Agilysys reported revenues up 20.7%, topping estimates by 3.1%. Agilysys traded down 4.7% following the results.

Read our full analysis of Cadence’s results here and Agilysys’s results here.

There has been positive sentiment among investors in the vertical software segment, with share prices up 3.6% on average over the last month. PTC is up 17.3% during the same time and is heading into earnings with an average analyst price target of $199.11 (compared to the current share price of $202.22).

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