Aspen Technology Earnings: Here’s Why Investors are Happy Now

Aspen Technology Inc. (NASDAQ:AZPN) 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 5.28%.

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Aspen Technology Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1300% to $0.14 in the quarter versus EPS of $0.01 in the year-earlier quarter.

Revenue: Rose 29.44% to $79.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Aspen Technology Inc. reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.05. It beat the average revenue estimate of $73.1 million.

Quoting Management: Mark Fusco, Chief Executive Officer of AspenTech, said, “AspenTech delivered strong fiscal third quarter results that exceeded our guidance on all key metrics, including approximately 13% year-over-year growth in total license contract value. Customer demand remains solid across our key vertical markets and geographies, and we are increasingly seeing customers use a broader cross-section of our product suite.”

Key Stats (on next page)…

Revenue increased 2.7% from $77.31 million in the previous quarter. EPS increased 7.69% from $0.13 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.07 and has not changed. For the current year, the average estimate is a profit of $0.32, which is the same with that ninety days ago.

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

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