Industrial software maker PTC trims annual forecast amid tariff concerns

PTC

05/02/2025 22:33

Feb 5 (Reuters) - PTC  PTC.O  cut its full-year revenue
and adjusted earnings forecasts on Wednesday amid increasing
competition and fears over President Donald Trump's tariff
policy, which could result in fewer takers for its industrial
and testing software.
    Shares of the company were down 2.8% after the bell.
    PTC offers product lifecycle management (PLM) software,
which helps in development and manufacturing of products. The
company faces stiff competition from AutoDesk  ADSK.O , Siemens
 SIEGn.DE  and Dassault Systems  DAST.PA .
    Boston-based PTC now expects full-year revenue to be between
$2.43 billion and $2.53 billion, below its previous forecast of
$2.51 billion to $2.61 billion.
    U.S. automakers — customers of PTC — are exposed to any
tariff implementations by Trump.
    The U.S. president imposed a steep 25% tariff on Mexico and
Canada, and a 10% tariff on China last week. Initially set to
take effect on Feb. 4, he agreed to a 30-day pause for tariffs
on Mexico and Canada in return for concessions on its borders.
    PTC now expects adjusted earnings per share between $5.30
and $6.00 for the full year, below its previous estimate of
between $5.60 and $6.30.
    Among PTC's clients is Volkswagen  VOWG_p.DE , one of the
most exposed automakers in Europe from tariffs, according to
Stifel.
    PTC expects revenue to be between $590 million and $620
million in the second quarter, below analysts' average estimate
of $648.7 million, according to data compiled by LSEG.
    PTC projected adjusted earnings per share of $1.30 to $1.50
for the quarter, compared with analysts' estimate of $1.62.
    It posted revenue of $565 million for the first quarter
ended Dec. 31, compared with the average analyst estimate of
$552.1 million.
    Excluding items, PTC earned $1.10 per share, above estimates
of 89 cents.

 (Reporting by Rishi Kant in Bengaluru; Editing by Maju Samuel)
 ((Rishi.Kant@thomsonreuters.com;))