PTC Sees Q3 EPS $0.90-$1.00 Vs $1.21 Est.; Revenue $525M-$540M Vs $584.42M Est.; FY24 EPS $4.60-$5.10 Vs $4.94 Est.; Revenue $2.20B-$2.24B Vs $2.32B Est.
Portfolio Pulse from Benzinga Newsdesk
PTC has revised its Q3 and FY24 earnings and revenue guidance below analyst estimates, citing a challenging selling environment and FX impact. The company reported solid Q2'24 ARR and free cash flow results, driven by its subscription business model and operational discipline. PTC aims to de-lever rapidly, with a debt to EBITDA ratio of 2.3x at Q2'24 end. The updated guidance includes lower EPS and revenue forecasts for Q3 and FY24, with a focus on maintaining free cash flow guidance and narrowing the ARR guidance range.
May 01, 2024 | 8:33 pm
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NEGATIVE IMPACT
PTC has lowered its Q3 and FY24 earnings and revenue forecasts, attributing the revision to a challenging selling environment and the impact of foreign exchange rates. Despite this, the company has shown resilience through its subscription business model and operational efficiency.
The downward revision in earnings and revenue guidance is typically perceived negatively by the market, as it may indicate underlying challenges in the company's operations or market conditions. The mention of a challenging selling environment and the impact of FX rates as reasons for the revision could lead to concerns about PTC's short-term growth prospects, potentially affecting investor sentiment and the stock price negatively.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100