(Reuters) – Industrial software maker PTC forecast current-quarter revenue and profit above Wall Street estimates on Wednesday, but missed revenue expectations for the third quarter as enterprise spending remained tight.
High interest rates are prompting enterprise clients to spend cautiously and rethink their plans to ramp-up digitization and automate workflow to tap the AI boom.
Still, expectations of rate cuts from the U.S. Federal Reserve this year could ease budget constraints for businesses, boosting demand for companies such as PTC.
The company’s software is used to design and repair products ranging from planes to computers. It acquired ServiceMax for about $1.46 billion in cash last year, a business that helps clients repair assets such as wind turbines and medical devices.
PTC competes with larger companies including Autodesk and Siemens AG for computer-aided design (CAD) software solutions.
It forecast fourth-quarter revenue of between $598 million and $648 million, compared with analysts’ average estimate of $616.9 million, according to LSEG data.
The company, which counts Volkswagen and Indian motorcycle maker Eicher Motors’ Royal Enfield as its clients, expects fourth-quarter adjusted profit per share between $1.30 and $1.66, compared with estimates of $1.37.
The company also trimmed the upper end of its fiscal 2024 revenue forecast. It now expects annual revenue of between $2.27 billion and $2.32 billion, compared with its earlier expectations of $2.27 billion to $2.34 billion. PTC’s third-quarter revenue fell about 4% to $519 million from a year earlier, missing estimates of $533.5 million.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Devika Syamnath)
Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.