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Canonsburg, Pennsylvania-based ANSYS, Inc. (ANSS) develops and markets engineering simulation software and services for engineers, designers, researchers, and students. With a market cap of $27.9 billion, ANSYS’ operations span various countries in the Americas, Europe, the Middle East, Asia-Pacific, and Africa. It is expected to announce its Q2 earnings after the market closes on Wednesday, Jul. 31.
Ahead of the event, analysts expect ANSYS to report a profit of $1.42 per share, up 34% from $1.06 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in three of the past four quarters while missing on one occasion. Its EPS for the last reported quarter missed the consensus estimates by 45.2%.
Looking ahead to fiscal 2024, analysts expect ANSYS to report an EPS of $7.05, up 4.4% from $6.75 in fiscal 2023. In fiscal 2025, its EPS is expected to grow 13.9% year over year to $8.03.
ANSS stock is down 11.8% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 16.5% gains and the S&P 500 Technology Sector SPDR’s (XLK) 17% returns over the same time frame.
ANSYS stock fell 2.2% on May 2 following the release of its Q1 results on May 1. The company reported an 8.4% fall in total revenue and a massive 65.4% decline in net income compared to the year-ago quarter. Also, ANSYS reported a 12.9% surge in operating expenses compared to the previous Q1, raising concerns regarding its operational efficiency.
Despite the dip in profit, the company has maintained a healthy cash flow. It plans capital spending of $40-50 million during fiscal 2024, up from $25.3 million in fiscal 2023, demonstrating its commitment towards growth and expansion.
The consensus opinion on ANSYS stock is neutral, with a “Hold” rating overall. Out of the 13 analysts covering the stock, two recommend a “Strong Buy,” nine advise a “Hold,” one suggests a “Moderate Sell,” and one advocates a “Strong Sell.”
The average price target for ANSYS stock is $344, indicating a potential upside of 7.5% from current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
