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BOSTON - PTC Inc. (NASDAQ:PTC) reported first-quarter earnings that beat analyst estimates, but its stock plunged 8.4% in after-hours trading as the company’s guidance for the upcoming quarter and full fiscal year fell short of expectations.
The software company posted adjusted earnings per share of $1.10 for its fiscal first quarter ended December 31, surpassing the analyst consensus of $0.90. Revenue came in at $565 million, slightly above the $555.42 million analysts had projected and up 3% YoY.
However, PTC’s outlook disappointed investors. For the second quarter, the company forecasts adjusted EPS of $1.30-$1.50, below the $1.62 consensus. It expects Q2 revenue between $590-620 million, also missing the $647 million analyst estimate.
The full-year guidance was similarly underwhelming. PTC projects fiscal 2025 adjusted EPS of $5.30-$6.00, compared to the $5.93 consensus. Revenue is expected to be $2.43-2.53 billion, below analysts’ $2.54 billion forecast.
"In Q1’25, we delivered solid year-over-year constant currency ARR growth of 11% and cash flow growth above 25%, which was in-line with our guidance," said Neil Barua, President and CEO of PTC. "Our differentiated strategy leverages our unique portfolio to help product companies accelerate their time to market and manage increasing complexity."
Despite the positive first-quarter results, the weak guidance overshadowed the earnings beat, leading to the sharp stock decline. The company’s outlook suggests potential challenges in maintaining growth rates in the coming quarters.
BMO analyst Daniel Jester said results were "reasonable" for the first quarter of 2025, though strong execution is required for the remainder of the year. "While we think shares may come under some near-term pressure against this steep ramp, we remain supportive on cyclical end market recovery, gains in ALM and PLM, and potential benefit from new AI solutions to be launched this year," the analyst stated. Following the results, the analyst lowered his price target from $225 to $220 while maintaining an Outperform rating.
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