PTC Inc. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

There's been a notable change in appetite for PTC Inc. (NASDAQ:PTC) shares in the week since its first-quarter report, with the stock down 13% to US$169. It looks like a credible result overall - although revenues of US$565m were what the analysts expected, PTC surprised by delivering a (statutory) profit of US$0.68 per share, an impressive 27% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for PTC

Taking into account the latest results, the consensus forecast from PTC's 19 analysts is for revenues of US$2.49b in 2025. This reflects a credible 7.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 20% to US$3.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.54b and earnings per share (EPS) of US$3.99 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at US$214, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values PTC at US$240 per share, while the most bearish prices it at US$179. This is a very narrow spread of estimates, implying either that PTC is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PTC's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of PTC'shistorical trends, as the 10% annualised revenue growth to the end of 2025 is roughly in line with the 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 12% per year. It's clear that while PTC's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for PTC. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$214, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on PTC. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for PTC going out to 2027, and you can see them free on our platform here..

Even so, be aware that PTC is showing 1 warning sign in our investment analysis , you should know about...

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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.