- Ansys reported an adjusted EPS of $4.44 for the fourth quarter, which surpassed expectations of $3.94 and improved from the previous year’s $3.94.
- Software license revenue increased by 8.2% year-over-year to $543.4 million, above the expected $511.9 million.
- Maintenance and services revenue grew by 12% year-over-year, reaching $338.8 million, slightly surpassing the estimate of $333.4 million.
- The annual contract value climbed 15% year-over-year to $1.09 billion, exceeding the forecast of $1.06 billion.
- Cost of sales was $72.7 million, a 3.8% increase from the previous year, yet below the projected $87.1 million.
- The software license cost of sales rose by 19% year-over-year, amounting to $12.9 million, which was much lower than the anticipated $23 million.
- Maintenance and services cost of sales decreased by 1.6% year-over-year to $37.9 million, below the estimate of $50.4 million.
- Total revenue reached $882.2 million for the quarter, indicating a 9.6% year-over-year growth and surpassing the expected $848.1 million.
- Analyst recommendations include 1 buy, 11 holds, and 1 sell for Ansys.
Ansys Inc on Smartkarma
Analyst coverage of Ansys Inc on Smartkarma reveals insights from Baptista Research. In their report titled “ANSYS Inc.: Growth in Automotive & Electrification As A Critical Growth Lever! – Major Drivers,” analysts highlight the company’s challenges in the face of regulatory changes, particularly affecting operations in China. The U.S. Department of Commerce imposed additional restrictions on certain products and services sold to Chinese entities, leading to a shortfall in both Annual Contract Value (ACV) and revenue for the third quarter of 2023.
A look at Ansys Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
ANSYS, Inc.’s long-term outlook appears promising based on the Smartkarma Smart Scores analysis. With strong scores in Growth, Resilience, and Momentum, the company is positioned well for future success. The high score in Growth indicates potential for expansion and increased market share, while Resilience and Momentum scores suggest the company’s ability to withstand challenges and maintain positive performance momentum.
Despite lower scores in Value and Dividend factors, ANSYS, Inc. seems to rely more on growth opportunities rather than immediate returns to investors. Overall, the company’s focus on developing and supporting software solutions for design analysis and optimization reflects its commitment to accelerating product time to market, reducing production costs, and optimizing product quality.
Disclaimer: This article by Smartkarma is general in nature and 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. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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