ANSYS Inc ANSS is scheduled to report earnings for the third quarter of 2024 on Nov. 6, after the closing bell.
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The Zacks Consensus Estimate for earnings per share (EPS) is pegged at $1.88, unchanged in the past 60 days. The figure indicates an increase of 33.33% from the year-ago quarter’s reported figure.
The Zacks Consensus Estimate for revenues is pegged at $531 million, indicating growth of 15.75% 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 4.8%. ANSS’ shares have lost 10.8% against the sub-industry’s growth of 11.3% and the S&P 500 Index’s rally of 20.5% in the year-to-date period.
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Factors to Note
Robust 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 aided ANSS’ top line.
The A&D sector continues to gain momentum, fueled by developments in the space industry and ongoing digital transformation, which positively impact the company’s software solutions. In the automotive industry, increased demand for electric vehicles and advanced driver-assistance systems is likely to have supported revenue growth in the quarter under review. Progress in artificial intelligence (AI) and machine learning is enhancing simulation software capabilities, opening new growth opportunities for the company. Strength in the high-tech sector, driven by advancements in AI, is a tailwind.
Geopolitical headwinds, unfavorable forex impact and global macroeconomic weakness weigh on ANSS’ performance.
Given the pending acquisition by Synopsys, as announced in January 2024, the company no longer provides guidance. However, it expects ACV and revenue growth rates to vary across the quarters in 2024 and be affected by the performance comparisons to 2023. It projects double-digit ACV and revenue growth in the second half of the year and expects 2024 ACV to grow in double digits.
ANSYS, Inc. Price and EPS Surprise
ANSYS, Inc. price-eps-surprise | ANSYS, Inc. Quote
Key Developments
In September, Ansys, TSMC and Microsoft successfully tested a solution that enhances the silicon Photonic Integrated Circuits (PICs) simulation and analysis process. The joined forces have yielded a 10X speed-up in Ansys’ Lumerical FDTD photonic simulations using Microsoft Azure’s NC A100v4-series virtual machines powered by NVIDIA accelerated computing technology operating on Azure AI infrastructure.
Ansys further strengthened its long-standing collaboration with TSMC to transform the semiconductor industry by leveraging AI to advance multiphysics solutions to develop semiconductor technologies and workflows for high-efficiency designs.
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.
Shopify SHOP has an Earnings ESP of +5.78% and a Zacks Rank #1.
SHOP is set to report its third-quarter 2024 results on Nov. 12. The Zacks Consensus Estimate for its to-be-reported quarter’s earnings and revenues is pegged at 27 cents per share and $2.1 billion, respectively. Shopify shares have gained 70.2% in the past year.
BlackSky Technology Inc. BKSY has an Earnings ESP of +29.51% and a Zacks Rank #2.
BKSY is scheduled to report quarterly earnings on Nov. 7. The Zacks Consensus Estimate for BKSY’s to-be-reported quarter’s bottom line is pegged at a loss of 61 cents. The consensus estimate for revenues is pegged at $26.9 million. Shares of BKSY have lost 25% in the past year.
Yelp Inc. YELP presently has an Earnings ESP of +15.48% and a Zacks Rank #1. YELP is scheduled to report quarterly numbers on Nov. 7. The Zacks Consensus Estimate for YELP’s to-be-reported quarter’s earnings and revenues is pegged at 40 cents per share and $362.1 million, respectively. Shares of YELP have lost 18.2% in the past year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
