Ansys Earnings: Here’s Why the Stock is Rising Now

Ansys, Inc. (NASDAQ:ANSS) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 9%.

Ansys, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 6.94% to $0.77 in the quarter versus EPS of $0.72 in the year-earlier quarter.

Revenue: Rose 10.86% to $216.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ansys, Inc. reported adjusted EPS income of $0.77 per share. By that measure, the company beat the mean analyst estimate of $0.71. It beat the average revenue estimate of $208.73 million.

Quoting Management: “Q2 was a very strong quarter for ANSYS with revenues and earnings above the high end of our guidance range. Overall, the business performed well on both the software license and the maintenance and service lines. Our recurring business represented 69% of non-GAAP revenue for the quarter and our non-GAAP operating profit margin was a solid 48.4%. The results reflect a combination of improved execution in targeted areas and a minor improvement in the stability of the general business climate. Consistent with today’s general market dynamics and what other enterprise software companies are reporting, we also continued to see mixed sales results globally, particularly in pockets of Europe and the Asia-Pacific region where the uncertain macro-economy has an impact on investment patterns, in spite of positive customer sentiments. During the second quarter, we also took advantage of market conditions and returned capital to our stockholders through the repurchase of almost one million shares,” stated Jim Cashman, ANSYS President and Chief Executive Officer.

Key Stats (on next page)…

Revenue increased 9.34% from $197.73 million in the previous quarter. EPS increased 8.45% from $0.71 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.76 to a profit $0.75. For the current year, the average estimate has moved down from a profit of $3.04 to a profit of $3.01 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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