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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 $28.1 billion, ANSYS' operations span the Americas, Indo-Pacific, Europe, the Middle East, and Africa. It is expected to announce its Q3 earnings after the market closes on Wednesday, Nov. 6.
Ahead of the event, analysts expect ANSYS to report a profit of $1.15 per share, up 29.2% from $0.89 per share reported in the year-ago quarter. The company has surpassed Wall Street’s adjusted EPS estimates thrice over the past four quarters while missing on another occasion. Its adjusted EPS for the last reported quarter grew by a massive 78.3% year-over-year to $1.89, exceeding the consensus estimates by 33.1%.
For fiscal 2024, analysts expect ANSYS to report an adjusted EPS of $7.32, up 8.4% from $6.75 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 11.1% year-over-year to $8.13.
ANSS stock has plummeted 11.3% on a YTD basis, substantially underperforming the S&P 500 Index’s ($SPX) 21.5% gains and the Technology Select Sector SPDR Fund’s (XLK) 18.7% returns during the same time frame.
ANSYS had a difficult start to the year as its stock prices plunged 5.5% following the announcement of its acquisition by Synopsys, Inc. (SNPS) on Jan. 16 and since then, the stock has struggled to regain its footing.
Despite exceeding Wall Street’s topline and earnings expectations ANSYS stock dropped 1.2% in the trading session after the release of its Q2 earnings on Jul. 31. The company reported an impressive 19.6% year-over-year growth in revenues, reaching $594.1 million, exceeding Wall Street’s expectations by a large margin. Meanwhile, its net income surged by a massive 87% compared to the year-ago quarter, totaling $130 million. However, as the company has suspended its quarterly earnings calls and ceased providing management guidance, it has left investors uncertain about the company’s prospects.
The consensus opinion on ANSS stock is neutral, with an overall “Hold” rating. Out of the 12 analysts covering the stock, two recommend a “Strong Buy,” nine advise a “Hold,” and one suggests a “Strong Sell” rating. The mean price target of $348.78 represents a potential upside of 8.4% from current price levels.
On the date of publication, Aditya Sarawgi 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.
