Parametric Tech Beats Estimates
Updated from 11:37 a.m. EDT
SAN FRANCISCO -- Investors applauded a strong report from
Parametric Tech
(PMTC)
on Wednesday.
The stock was up $1.32, or 9%, to $16.05 in recent trading on the company's second-quarter earnings beat and on news that a weak U.S. market will not pull down the company's full-year earnings.
The company reaffirmed full-year guidance for revenue of $1.055 billion, but said EPS, excluding items, will come in at the high end of its range of $1.17 to $1.27. Analysts were expecting EPS of $1.21.
PTC reported second-quarter revenue of $257.8 million, up 13% from $228.1 million for the second quarter of last year. Analysts polled by Thomson Financial were expecting revenue of $255.2 million.
Net income at the Needham, Mass. software company rose 8% to $18.8 million, or 16 cents a share, from $17.4 million, or 15 cents a share, in the year-ago period.
Excluding items, EPS was 30 cents, beating analysts' estimates by 4 cents a share.
For the third quarter, PTC said revenue would range between $259 million and $269 million and EPS, excluding items, would be 28 cents to 32 cents. Analysts were projecting revenue of $263.1 million and EPS, less items, of 29 cents.
The company reaffirmed full-year guidance but said EPS, excluding items, would come in at the high end of its range of $1.17 to $1.27. Analysts were expecting EPS of $1.21.
The company had strong license revenue growth in Europe and maintenance revenue growth in all geographies, but, as expected, continued "softness" in North American license sales, CEO C. Richard Harrison said in a statement.
Excluding items, operating margin was 21%, a 630 basis-point improvement from the same period a year ago, the company reported.
The company's chief competitor as a supplier of product lifecycle management software is French developer
Dassault Systemes
(DASTY)
, which reports earnings April 29.
Oracle
(ORCL) - Get Report
, which reported last month, also sells in the space, as does
Lawson Software
( LWSN), which
reported earnings earlier this month.