PTC Inc. Just Recorded A 28% EPS Beat: Here's What Analysts Are Forecasting Next

PTC Inc. (NASDAQ:PTC) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of US$603m, some 4.6% above estimates, and statutory earnings per share (EPS) coming in at US$0.95, 28% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on PTC after the latest results.

See our latest analysis for PTC

Taking into account the latest results, the most recent consensus for PTC from 17 analysts is for revenues of US$2.31b in 2024. If met, it would imply a satisfactory 3.0% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 23% to US$2.97. In the lead-up to this report, the analysts had been modelling revenues of US$2.32b and earnings per share (EPS) of US$2.99 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$203, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on PTC, with the most bullish analyst valuing it at US$220 and the most bearish at US$177 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that PTC's revenue growth is expected to slow, with the forecast 6.0% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than PTC.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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. We have forecasts for PTC going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for PTC that you need to be mindful of.

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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.