PTC Q1 Earnings: Can PTC Hit Its $0.43 EPS Target?

in EARNINGS/INVESTING IDEAS by

PTC Inc. (NASDAQGS:PTC) is scheduled to report Q1 earnings results on January 22, 2020. The conference call with management is scheduled for 5:00 PM EST.

The company is expected to report earnings of $0.43/share on revenue of $347 million. The consensus earnings per share (EPS) of $0.43/share is based on a poll of 13 analysts and represents a decline of -24.6% over the same quarter last year when the company reported earnings of $0.57/share.

The revenue forecast of $347 million based on a poll of 11 analysts implies a year-over-year (YoY) growth of 2.4%. Last year the company reported $339 million in revenue for the quarter.

Expected to report EPS decline of -$0.14/share for Q1, 2019
Metric Expected Prior Year YoY Change
Revenue $347.00 $339.03 2.4%
EPS $0.43 $0.57 -24.6%

Earnings Call Trends

Management has been great at managing analyst expectations historically. The company has a perfect record over the last 8 tracked quarters of exceeding earnings guidance.

What are your expectations from PTC for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q4, 2019 $0.45 $0.45 0.6% Beat
Q3, 2019 $0.34 $0.36 5.9% Beat
Q2, 2019 $0.34 $0.38 11.8% Beat
Q1, 2019 $0.40 $0.57 42.5% Beat
Q4, 2018 $0.44 $0.45 2.3% Beat
Q3, 2018 $0.32 $0.36 12.5% Beat
Q2, 2018 $0.31 $0.34 9.7% Beat
Q1, 2018 $0.30 $0.31 3.3% Beat

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report.

After the last earnings report for the period ending September 30, 2019, the stock price reacted by increasing by 6.1%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-10-23 $65.94 $69.95 6.1% Increase
2019-07-24 $90.60 $72.90 -19.5% Decline
2019-04-24 $100.82 $90.83 -9.9% Decline
2019-01-23 $85.81 $79.75 -7.1% Decline

Fundamentals And Technical Analysis

PTC is currently trading at $79.97/share, down -0.2% for the day. The company is trading at approximately 78.0% of its 52-week high of $102.47/share. The company’s stock price is up 14.3% since the last earnings report and up 2.6% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 66.86 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

NASDAQGS:PTC Stock Price Chart Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of -337.1x and a forward P/E multiple of 37.1x. PTC’s current share price also implies a price-to-book (P/B) multiple of 7.7x. The following table summarizes some other key fundamental ratios:

Data as of January 21, 2020
Metric Value
Last Fiscal Period FY2019.Q4
Period End Date September 30, 2019
Stock Price (Current) $79.97
P/E Ratio -337.1x
P/E Ratio (Fwd) 37.1x
PEG Ratio 1.0
Total Debt to Capital (%) 6.7%
Levered Free Cash Flow $220.7 million
Enterprise Value / EBITDA 58.0x

Source: Finbox

Company Profile: PTC Inc.

PTC Inc. is a mid-cap stock with a market capitalization of $9.256 billion and a total enterprise value of $9.627 billion. The company operates in the Information Technology sector and the Software industry.

PTC Inc. operates as a software and services company in the Americas, Europe, and the Asia Pacific. The company operates in two segments, Software Products, and Professional Services. It offers Creo, a suite of product design software that provides capabilities for design flexibility, advanced assembly design, piping, and cabling design, advanced surfacing, comprehensive virtual prototyping, and other design functions; Windchill, a product lifecycle management software; ThingWorx, which includes cloud-based tools that allow customers to connect products and devices to the cloud; and Vuforia Studio, a cloud-based tool that enables industrial enterprises to author and publish augmented reality experiences.

The company also provides consulting, implementation, training, cloud, and license and support services. PTC Inc. markets its products primarily through third-party resellers and strategic partners.

The company was formerly known as Parametric Technology Corporation and changed its name to PTC Inc. in January 2013. PTC Inc. was founded in 1985 and is headquartered in Boston, Massachusetts.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.