PTC Set to Report Q4 Earnings: Here's What You Should Know

USM MAR PTC SPXC

PTC Inc (PTC - Free Report) is slated to report fourth-quarter fiscal 2022 results on Nov 2.

The Zacks Consensus Estimate for fiscal fourth-quarter revenues is pegged at $498.2 million, which suggests growth of 3.7% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at $1.14, indicating a year-over-year increase of 3.6%.

The company has a trailing four-quarter earnings surprise of 19.7%, on average.

PTC reported third-quarter fiscal 2022 non-GAAP earnings of 97 cents per share, up 16.9% on a year-over-year basis. However, the figure missed the Zacks Consensus Estimate by 9.4%. Revenues came in at $462.5 million, up 6% year over year (up 12% at constant currency or cc). The top line missed the Zacks Consensus Estimate by 2.8%.

Factors to Consider

Robust demand for products, especially digital transformation and software-as-a-service or SaaS, across all segments and regions is expected to have driven the bookings performance in the to-be-reported quarter. The company is also working toward accelerating the SaaS transition by introducing new products like Windchill+ and Creo plus.

Strength in the industrial Internet of things (IoT) solutions and solid demand for product lifecycle management (PLM) offerings and computer-aided design are expected to have contributed to PTC’s fiscal fourth-quarter top line. A solid uptick in demand for Creo, Windchill platforms and ThingWorx DPM is likely to have acted as a tailwind.

Increased demand for codebeamer product line in industries like automotive and medical devices are tailwinds. The company concluded the acquisition of Intland in the last-reported quarter, which is now referred as codebeamer.

Subscription-centric model and contributions from Arena Solutions and Onshape are expected to have favored top-line growth in the to-be-reported quarter.

In the fiscal fourth quarter, PTC announced the availability of the Onshape-Arena Connection, which integrates the company’s Onshape and Arena PLM solutions. It promotes continuous and cross-functional product development that can minimize costs and scheduling impacts on the manufacturing process.

Nonetheless, increasing operating expenses and macro-related headwinds are likely to have affected PTC’s performance in the fiscal third quarter.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for PTC 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. But that’s not the case here.

PTC has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies 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:

United States Cellular (USM - Free Report) has an Earnings ESP of +47.46% and currently has a Zacks Rank #1. United States Cellular is scheduled to report earnings on Nov 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for United States Cellular’s to-be-reported quarter’s earnings and revenues is pegged at 20 cents per share and $1.03 billion, respectively. United States Cellular surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 27.6%. Shares of USM lost 1.8% in the past year.

Marriott International (MAR - Free Report) has an Earnings ESP of +1.55% and currently has a Zacks Rank #1. Marriott International is scheduled to report earnings on Nov 3.

The Zacks Consensus Estimate for Marriott International’s to-be-reported quarter’s earnings and revenues is pegged at $1.69 per share and $5.27 billion, respectively. Marriott International surpassed earnings estimates in the preceding four quarters, delivering an average surprise of 18.6%. Shares of MAR lost 1.4% in the past year.

SPX Technologies (SPXC - Free Report) has an Earnings ESP of +1.01% and currently has a Zacks Rank #2. SPX Technologies is scheduled to report earnings on Nov 3.

The Zacks Consensus Estimate for SPX Technologies to-be-reported quarter’s earnings and revenues is pegged at 66 cents per share and $352 million, respectively. SPX Technologies surpassed earnings estimates in three of the preceding four quarters, delivering an average surprise of 9.1%. Shares of SPXC increased 12.4% in the past year.

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

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