PTC (NASDAQ:PTC) is preparing to release its quarterly earnings on Wednesday, 2024-11-06. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect PTC to report an earnings per share (EPS) of $1.45.
PTC bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Overview of Past Earnings
During the last quarter, the company reported an EPS beat by $0.02, leading to a 1.11% drop in the share price on the subsequent day.
Here's a look at PTC's past performance and the resulting price change:
| Quarter | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 |
|---|---|---|---|---|
| EPS Estimate | 0.96 | 1.23 | 0.96 | 1.14 |
| EPS Actual | 0.98 | 1.46 | 1.11 | 1.20 |
| Price Change % | -1.0% | -2.0% | -1.0% | 5.0% |
Performance of PTC Shares
Shares of PTC were trading at $186.225 as of November 04. Over the last 52-week period, shares are up 26.53%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.
Analysts' Take on PTC
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding PTC.
PTC has received a total of 2 ratings from analysts, with the consensus rating as Buy. With an average one-year price target of $210.5, the consensus suggests a potential 13.04% upside.
Peer Ratings Comparison
The below comparison of the analyst ratings and average 1-year price targets of Zoom Video Comms, Tyler Technologies and Samsara, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
The consensus among analysts is an Buy trajectory for Zoom Video Comms, with an average 1-year price target of $77.8, indicating a potential 58.22% downside. As per analysts' assessments, Tyler Technologies is favoring an Outperform trajectory, with an average 1-year price target of $678.91, suggesting a potential 264.56% upside. The consensus outlook from analysts is an Neutral trajectory for Samsara, with an average 1-year price target of $44.79, indicating a potential 75.95% downside. Key Findings: Peer Analysis Summary
In the peer analysis summary, key metrics for Zoom Video Comms, Tyler Technologies and Samsara are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| PTC | Buy | -4.37% | $406.72M | 2.32% |
| Zoom Video Comms | Buy | 2.09% | $877.43M | 2.60% |
| Tyler Technologies | Outperform | 9.84% | $237.46M | 2.37% |
| Samsara | Neutral | 36.92% | $226.84M | -5.25% |
Key Takeaway:
PTC ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit and Return on Equity.
About PTC
PTC offers high-end computer-assisted design (Creo) and product lifecycle management (Windchill) software as well as Internet of Things and AR industrial solutions. Founded in 1985, PTC has 28,000 customers, with revenue stemming mostly from North America (45%) and Europe (40%).
Financial Milestones: PTC's Journey
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
Revenue Challenges: PTC's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -4.37%. This indicates a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Net Margin: PTC's net margin excels beyond industry benchmarks, reaching 13.3%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): PTC's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.32%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): PTC's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.12%, the company may face hurdles in generating optimal returns from its assets.
Debt Management: PTC's debt-to-equity ratio stands notably higher than the industry average, reaching 0.66. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
To track all earnings releases for PTC visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
