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Valued at a market cap of $30.8 billion, ANSYS, Inc. (ANSS) develops and markets engineering simulation software and services for engineers, designers, researchers, and students. The Canonsburg, Pennsylvania-based company’s simulation platform is its key product. It provides structural analysis product suite and simulation software solutions for Fluids, Electronics, Semiconductors, and Multiphysics. It is expected to announce its fiscal Q4 earnings results on Wednesday, Feb. 19.
Ahead of this event, analysts project the tech company to report a profit of $3.22 per share, down 5% from $3.39 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the last four quarters while missing on another occasion. Its earnings of $1.87 per share in the previous quarter exceeded the forecasted figure by a stunning 62.6% margin.
For fiscal 2024, analysts expect ANSS to report an EPS of $7.66, up 13.5% from a profit of $6.75 in fiscal 2023.
Shares of ANSYS have gained 4.5% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 25% return and the Technology Select Sector SPDR Fund’s (XLK) 17.9% return over the same time frame.
Shares of ANSS surged 6.6% after delivering better-than-expected Q3 earnings on Nov. 6. The company’s bottom line increased by a whopping 83% year-over-year, while the top line grew 31.2% from the year-ago quarter. The company's annual contract value (ACV) also climbed by 18.1% year over year, reflecting strong business momentum. Solid multi-year lease growth aided its results. Furthermore, during the quarter, the company closed an $88 million contract in the high-tech industry in the Americas. This might have further bolstered investor confidence.
Yet, Wall Street analysts remain cautious about ANSYS’ stock, with a "Hold" rating overall. Among 12 analysts covering the stock, two recommend "Strong Buy," nine recommend “Hold,” and one indicates a “Strong Sell” rating. The mean price target for ANSS is $353.67, which indicates a marginal potential upside from the current levels.
