PTC Stock Jumps After Q3 Revenue Beats Expectations
NEW YORK (TheStreet) -- Shares of PTC (PTC) - Get Report are gaining 4.45% to $41.32 on heavy trading volume late Thursday morning after the company reported better-than-expected revenue for the 2016 fiscal third quarter.
After yesterday's market close, the Needham, MA-based software company posted revenue of $289 million, above analysts' estimates of $288 million.
But earnings of 26 cents per share missed analysts' forecasts of 31 cents per share.
"Customers are rapidly adopting our subscription offering, accelerating our business model transition, and our improved execution led to a strong bookings performance, beating the high end of our guidance for the quarter," CEO James Heppelmann said in a statement.
For fiscal 2016, PTC sees earnings per share between $1.36 and $1.41 on revenue of $1.16 billion to $1.17 billion. Previously, the company guided earnings per share in the range of $1.52 to $1.62 on revenue of $1.16 billion to $1.18 billion, the Fly noted.
Analysts are modeling earnings of $1.52 per share on revenue of $1.17 billion for the full year.
About 2.11 million of the company's shares changed hands so far today compared to its average volume of 1.04 million shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins.
But the team also finds weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: PTC