Parametric Technology Earnings: Everything You Must Know Now

Parametric Technology Corporation (NASDAQ:PMTC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

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Parametric Technology Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 36.67% to $0.41 in the quarter versus EPS of $0.30 in the year-earlier quarter.

Revenue: Rose 4.24% to $313.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Parametric Technology Corporation reported adjusted EPS income of $0.41 per share. By that measure, the company beat the mean analyst estimate of $0.35. It missed the average revenue estimate of $315.92 million.

Quoting Management: James Heppelmann, president and chief executive officer, commented, “We are pleased with PTC’s Q2 operating results, with non-GAAP revenue at the mid-point of our guidance range and non-GAAP EPS exceeding the high end of our guidance range. Our license revenue of $80 million was up 7% year over year (9% on a constant currency basis), consistent with our guidance range, with flat organic license revenue (up 3% on a constant currency basis). Servigistics performed well again this quarter, delivering results in line with our expectations. From a geographic perspective, we had a very strong quarter in Japan and solid growth in the Pac Rim, which was offset by soft results in Europe and Americas reflecting the current macro environment.”

Key Stats (on next page)…

Revenue decreased 1.83% from $319.75 million in the previous quarter. EPS increased 13.89% from $0.36 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 $0.46 to a profit $0.45. For the current year, the average estimate has moved up from a profit of $1.75 to a profit of $1.77 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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