PTC forecasts quarterly revenue below estimates on tight tech spending

PTC

06/11/2024 22:55

Nov 6 (Reuters) - Industrial software maker PTC  PTC.O 
forecast first-quarter revenue below estimates on Wednesday,
signaling continued weakness in demand for its industrial design
and testing software as companies keep a tight leash on budgets.
    Businesses have dialed back on software budgets in the wake
of high-interest rates and an uncertain economy, weighing on
demand for companies such as PTC.
        With companies like Volkswagen  VOWG_p.DE  and Indian
motorcycle maker Eicher Motors'  EICH.NS  Royal Enfield as
clients, PTC makes software that helps firms design, build and
manage products throughout their life cycles.
    The Boston-based company also said that its board has
authorized a share repurchase of up to $2 billion through
September 2027.
    The company expects revenue to be between $540 million and
$570 million in the first quarter, below analysts' average
estimate of $609.1 million, according to data complied by LSEG.
    PTC projected adjusted earnings per share of 75 cents to 95
cents for the quarter, compared with analysts' estimate of
$1.33.
    For the fiscal year 2025, PTC expects revenue to be between
$2.51 billion and $2.61 billion, the midpoint of which is above
analysts' average estimate of $2.54 billion.
    It posted revenue of $626.5 million for the fourth quarter
ended Sept. 30, compared with the average analyst estimates of
$620.5 million.

 (Reporting by Juby Babu in Mexico City; Editing by Maju Samuel)
 ((Juby.Babu@thomsonreuters.com;))