Aspen Technology Third Quarter 2024 Earnings: Beats Expectations

Aspen Technology (NASDAQ:AZPN) Third Quarter 2024 Results

Key Financial Results

• Revenue: US$278.1m (up 21% from 3Q 2023).
• Net income: US$1.56m (up from US$57.6m loss in 3Q 2023).
• Profit margin: 0.6% (up from net loss in 3Q 2023). The move to profitability was primarily driven by higher revenue.
• EPS: US$0.025 (up from US$0.89 loss in 3Q 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Aspen Technology Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 6.8%. Earnings per share (EPS) also surpassed analyst estimates.

Looking ahead, revenue is forecast to grow 9.1% p.a. on average during the next 3 years, compared to a 13% growth forecast for the Software industry in the US.

Performance of the American Software industry.

The company's shares are down 1.8% from a week ago.

Valuation

Our analysis of Aspen Technology based on 6 different valuation metrics shows it might be overvalued. Click here to find out what a fair price for the stock might be and where analysts see the share price heading over the next year.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.