ANSYS, Inc
ANSS
is scheduled to report fourth-quarter 2021 results on Feb 23.
The company expects non-GAAP earnings in the range of $2.48-$2.81 per share for the fourth quarter. The Zacks Consensus Estimate is pegged at $2.68 per share, unchanged in the past 30 days. The figure indicates a decline of 9.5% from the year-ago quarter’s reported figure.
Non-GAAP revenues are anticipated between $614.9 million and $654.9 million. The consensus mark for revenues is pegged at $636.2 million, suggesting growth of 1.4% from the prior-year quarter’s levels.
The company has a trailing four-quarter earnings surprise of 22.7%, on average.
Factors to Note
Solid uptake of ANSYS’ simulation solutions in the verticals like aerospace & defense, high tech, ground transportation and automotive as the COVID situation eases globally is likely to have favored the top line in the quarter. Increases in chip designing activity in the semiconductor space also bodes well.
Continued momentum among enterprise customers as well as improving business conditions at small- and medium-sized customers is likely to have aided fourth-quarter revenue performance. The increasing clout of digital twins and process optimization solutions is likely to have acted as a tailwind.
Strong channel distribution, go-to-market momentum and a solid pipeline are expected to have contributed to annual contract value or ACV.
Business gains derived from its various collaborations, including the likes of Microsoft and Rockwell Automation, are likely to have helped the company acquire more customers and boosted its quarterly performance.
Synergies from the buyout of Zemax, Analytical Graphics and Phoenix Integration are likely to get reflected in the fourth quarter top line.
In October 2021, ANSYS acquired Zemax, LLC. The acquisition will help ANSYS to offer its customers with a complete set of solutions for simulating complex optical- and photonics-powered products. The broad portfolio of solutions will enable customers to quickly create optimal designs by modernizing the workflow and improving communication among optical, photonics, mechanical and manufacturing engineers.
The Zacks Consensus Estimate for Maintenance and service revenues is pegged at $245 million, which indicates growth of 7% from the year-ago quarter’s levels.
The consensus mark for Software licenses revenues is pegged at $371 million, which suggests a decline of 2.9% from the prior-year quarter’s levels.
Increasing costs on product enhancements, acquisitions, and research and development are likely to have exerted pressure on margin expansion in the quarter to be reported.
Pandemic-driven global supply chain disruptions, component shortages and logistics bottlenecks are likely to have affected the company’s performance.
What Our Model Says
Our proven model does not 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.
ANSYS has an Earnings ESP of +0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Zscaler
ZS
has an Earnings ESP of +3.6% and a Zacks Rank of 2 at present. You can see
the complete list of today’s Zacks #1 Rank stocks here.
Zscaler is set to release second-quarter fiscal 2022 results on Feb 24. The Zacks Consensus Estimate for earnings is pegged at 11 cents per share, suggesting an increase of 10% from the prior-year quarter’s reported figure. Shares of Zscaler have increased 19.6% in the past year.
NetApp
NTAP
has an Earnings ESP of +0.4% and a Zacks Rank of 2 at present.
NetApp is scheduled to release third-quarter 2022 results on Feb 23. The Zacks Consensus Estimate for earnings is pegged at $1.28 per share, suggesting an increase of 16.4% from the prior-year quarter’s levels. Shares of NTAP have increased 30.9% in the past year.
Nielsen Holdings
NLSN
has an Earnings ESP of +2.78% and a Zacks Rank of 2.
Nielsen is scheduled to release fourth-quarter 2021 results on Feb 28. The Zacks Consensus Estimate for earnings is pegged at 36 cents per share, declining 32.1% from the year-ago quarter’s levels. Shares of NLSN have decreased 25.9% in the past year.
Stay on top of upcoming earnings announcements with the Zacks
Earnings Calendar.
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