Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of PTC Rose Today

By Timothy Green - Jan 23, 2020 at 1:53PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The software company impressed investors with strong quarterly results and guidance.

What happened

Shares of PTC Inc. (PTC 0.62%) jumped on Thursday after the software provider  reported its fiscal first-quarter results. PTC beat analyst estimates for both revenue and adjusted earnings, and it provided guidance that compared favorably to the analyst consensus. The stock was up about 8.7% at 1:20 p.m. EST, after having been up as much as 11.1% earlier in the day.

So what

PTC reported first-quarter revenue of $356.1 million, up 6.4% year over year and $13.4 million above the average analyst estimate. Recurring revenue soared 21.5% to $305.4 million, while perpetual license revenue sank 78.5% to $9.0 million.

A rising chart

Image source: Getty Images.

Annualized recurring revenue reached $1.16 billion, up 11% year over year. PTC reported non-GAAP (adjusted) earnings per share of $0.57, up from $0.56 in the prior-year period and $0.13 higher than analysts were expecting.

"PTC is entering this new decade with a robust portfolio that positions us to deliver an impressive combination of growth and profitability. We see a lot of momentum in the core CAD and PLM business, while our IOT and AR businesses continue to generate very strong growth," said PTC CEO James Heppelmann.

Now what

For fiscal 2020, PTC expects revenue to grow by 15% to 21%, to a range of $1.445 billion to $1.525 billion. Annualized recurring revenue is expected to hit $1.27 billion to $1.295 billion, up 14% to 16%. Non-GAAP earnings per share (EPS) is expected between $2.15 and $2.65, up 31% to 62% from fiscal 2019. Analysts were expecting EPS guidance of $2.15.

With PTC handily beating expectations and predicting strong double-digit earnings growth this year, investors saw plenty of reasons to bid up the stock.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

PTC Inc. Stock Quote
PTC Inc.
PTC
$107.00 (0.62%) $0.66

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/03/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.