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Valued at a market cap of $27.7 billion, ANSYS, Inc. (ANSS) develops and markets engineering simulation software and services for engineers, designers, researchers, and students across a range of industries and academia, including high-tech, aerospace and defense (A&D), automotive, energy, industrial equipment, materials and chemicals, consumer products, healthcare and construction.
Headquartered in Canonsburg, Pennsylvania, the company is expected to unveil its Q1 2025 earnings after the market closes on Wednesday, Apr. 30. Ahead of this event, analysts expect ANSYS to report an adjusted earnings of $1.12 per share, reflecting a growth of 31.8% from $0.85 per share reported in the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on another occasion.
For fiscal 2025, analysts forecast ANSS to report an adjusted EPS of $8.71, marking a 5.5% increase from $8.26 reported in fiscal 2024. Moreover, in fiscal 2026, its adjusted earnings are expected to grow 20.6% year-over-year to $10.50 per share.
ANSS stock has dropped nearly 3.7% over the past 52 weeks, lagging behind the S&P 500 Index’s ($SPX) 8.2% gain and the Technology Select Sector SPDR Fund’s (XLK) 3.7% return during the same period.
Shares of ANSS rose 1.1% the next day after it released the strong Q4 2024 results on Feb. 19. The company posted revenue of $882.2 million, up 9.6% from the prior-year quarter, driven by an increase in annual contract value (ACV) and strong demand from the automotive and aerospace sectors. Its adjusted earnings surged 12.7% year-over-year to $4.44 per share, surpassing the consensus estimate of $4.
Analysts' consensus view on ANSS is cautious, with a "Hold" rating overall. Among 12 analysts covering the stock, two suggest a "Strong Buy," nine recommend a "Moderate Buy,” and one gives a “Strong Sell” rating. Its mean price target of $355.33 represents a 12.3% premium to current price levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
