Here's How ANSYS (ANSS) is Placed Before Q1 Earnings Release

ANSYS Inc ANSS is scheduled to report first-quarter 2024 results on May 1.

The performance is likely to have been driven by continued momentum for the company’s simulation solutions in various verticals like aerospace and defense (A&D), high-tech, automotive and ground transportation sectors.

Rapid growth for its high-fidelity simulation solutions, led by ongoing development in artificial intelligence and machine learning, is expected to have acted as another tailwind.

Ongoing momentum in the A&D sector, owing to the evolving space sector and digital transformation, bodes well for the company’s software solutions. In the automotive sector, higher demand for electric vehicles and advanced driver assistance systems solutions are likely to have favored the top line in the to-be-reported quarter.

ANSYS, Inc. Price and EPS Surprise

ANSYS, Inc. Price and EPS Surprise

ANSYS, Inc. price-eps-surprise | ANSYS, Inc. Quote

ANSS is also likely to have benefited from secular growth trends in the industrial equipment industry, which include electrification, Industrial Internet of Things devices and workflow automation.

Strength in subscription lease licenses is likely to have aided first-quarter revenue performance, owing to customers shifting from perpetual licenses to subscription leases.

Geopolitical instability, forex volatility and global macroeconomic weakness remain headwinds.

A Look at Estimates

The Zacks Consensus Estimate for EPS is pegged at $1.93, unchanged in the past 30 days. The figure indicates an increase of 4.3% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for revenues is pegged at $554.9 million, suggesting a rise of 8.9% from the prior-year quarter’s levels.

It has a trailing four-quarter earnings surprise of 10.5%, on average.

Given the pending acquisition by Synopsys, the company no longer provides outlook. However, it expects ACV and revenue growth for first-quarter 2024 to be the lowest among the four quarters. For 2024, it expects ACV to grow in double digits.

Recent Developments

On Apr 11, ANSS unveiled a modern online support platform known as AnsysGPT. The state-of-the-art platform is programed using Ansys data, which is available 24/7 to virtually assist customers by swiftly responding to questions regarding Ansys products, relevant physics and other challenging engineering topics.

On Mar 27, ANSS and SynMatrix collaborated in an OEM partnership to simplify RF filter design workflows for wireless communication applications. SynMatrix is a leading provider of RF filter design and optimization tools that integrate with HFSS electromagnetic simulation.

On Mar 19, the company announced its expanded collaboration with NVIDIA to accelerate the advancement of simulation solutions driven by pioneering technologies like computing and generative AI. The initiative is likely to foster the development of 6G communication infrastructure, digital twins, next-generation simulations, autonomous vehicles, improved graphics and visual rendering.

What Our Model Say

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.

ANSS has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combination

Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

QUALCOMM Incorporated QCOM has an Earnings ESP of +0.11% and currently carries a Zacks Rank of 2. QCOM is set to announce quarterly figures on May 1.

The Zacks Consensus Estimate for QCOM’s to-be-reported quarter’s earnings and revenues is pegged at $2.30 per share and $9.32 billion, respectively. Shares of QCOM have gained 46% in the past year.

Silicon Motion Technology Corporation SIMO has an Earnings ESP of +5.96% and presently carries a Zacks Rank #2. SIMO is slated to release quarterly numbers on May 2.

The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s earnings and revenues is pegged at 58 cents per share and $179.8 million, respectively. Shares of SIMO have increased 21.8% in the past year.

Booking Holdings Inc BKNG has an Earnings ESP of +4.13% and currently sports a Zacks Rank #1. BKNG is scheduled to report quarterly earnings on May 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BKNG’s to-be-reported quarter’s earnings and revenues is pegged at $14.03 per share and $4.25 billion, respectively. Shares of BKNG have increased 30.6% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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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.

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