ANSYS Inc ANSS is scheduled to report earnings for the fourth quarter of 2024 on Feb. 19, after the closing bell.
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The Zacks Consensus Estimate for earnings per share (EPS) is pegged at $4.00, unchanged in the past 60 days. The figure indicates an increase of 1.5% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for revenues is pegged at $873.6 million, indicating growth of 8.5% from the prior-year quarter level. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing once. On average, its trailing four-quarter earnings surprise was 11.15%. ANSS’ shares have gained 2.8% compared with the Zacks Computer-Software industry’s growth of 7.9% and the S&P 500 Index’s rally of 23.5% in the past year.
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Factors at Play
Increased sales of its simulation solutions across major verticals such as aerospace and defense (A&D), high tech, automotive, industrial equipment and energy are likely to have driven ANSS’ top-line momentum.
The A&D sector continues to grow, fueled by developments in the space industry and ongoing digital transformation, which bodes well for the company’s software solutions. Higher demand for electric vehicles and advanced driver-assistance systems is likely to have boosted revenue growth for the automotive industry in the to-be-reported quarter. Significant strides in artificial intelligence (AI) and machine learning are expanding simulation software capabilities, unlocking new revenue streams for the company. Strong performance in the high-tech sector through AI-driven innovations is a tailwind.
Geopolitical headwinds, unfavorable forex fluctuations and global macroeconomic uncertainty weigh on ANSS’ performance.
ANSYS, Inc. Price and EPS Surprise
ANSYS, Inc. price-eps-surprise | ANSYS, Inc. Quote
Given the pending acquisition by Synopsys, as announced in January 2024, the company has refrained from issuing any outlook. However, it expects the 2024 annual contract value or ACV to grow in double digits. The deal, valued at nearly $35 billion, is anticipated to close in the first half of 2025. Ansys added that it, along with Synopsys, has received foreign direct investment approvals for the expected transaction in almost all of the relevant jurisdictions from the Israeli Competition Authority.
Key Recent Developments
Ansys’ collaborations with advanced technology suppliers, hardware vendors, specialized application developers and CAD, ECAD and PLM providers are likely to have acted as a key catalyst.
In January 2025, Ansys and Synopsys inked a definitive agreement to sell Ansys' PowerArtist business to Keysight Technologies. The transaction is contingent upon standard closing conditions, including regulatory review and the completion of Synopsys' planned acquisition of Ansys. The deal is currently awaiting regulatory approvals and is anticipated to be finalized in the first half of 2025.
In December 2024, Ansys partnered Sony Semiconductor Solutions Corporation to elevate the validation of perception systems for Advanced Driver Assistance Systems (ADAS) and Autonomous Vehicles (AVs). This collaboration leverages Ansys AVxcelerate Sensors to simulate real-world lighting and weather conditions, ensuring a high-fidelity evaluation of camera sensors and improving accuracy, safety and performance in AV systems.
In November 2024, Ansys’ security wing, Ansys Government Initiatives or AGI, won a deal to supply digital engineering solutions to the Microelectronics Commons. The initiative, funded through the CHES program and implemented by the Midwest Microelectronics Consortium, is a joint effort by the government, academia and private industry to transform the microelectronics landscape in the United States.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for ANSYS 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. However, this is not the case here.
Earnings ESP: ANSS has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ANSS currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks With Favorable Combination
Here are some stocks you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.
OGE Energy OGE is set to report fourth-quarter results on Feb. 19. It has an Earnings ESP of +2.41% and a Zacks Rank #2 at present.
OGE’s long-term (three to five years) earnings growth rate is 5.92%. The Zacks Consensus Estimate for earnings is pegged at 48 cents per share, which implies a year-over-year increase of 100%. Shares of OGE surged 31.9% in the past year.
CenterPoint Energy CNP is set to report fourth-quarter results on Feb. 20. It has an Earnings ESP of +0.63% and a Zacks Rank #2 at present.
CNP’s long-term earnings growth rate is 7.12%. The Zacks Consensus Estimate for earnings is pegged at 40 cents per share, which implies a year-over-year increase of 25%. Shares of CNP gained 19.8% in the past year.
TopBuild Corp. BLD has an Earnings ESP of +1.28% and a Zacks Rank #3. BLD is set to release quarterly results on Feb. 25.
BLD’s long-term earnings growth rate is 7.42%. The Zacks Consensus Estimate for earnings is pegged at $5.08 per share, which implies a year-over-year increase of 8.3%. Shares of BLD plunged 15.8% in the past year.
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