(Reuters) – Industrial software maker PTC forecast quarterly revenue below estimates while also slightly tightening full year guidance 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, which provides software solutions to several sectors for designing, manufacturing and servicing products.
The company expects third-quarter revenue in the range of $525 million to $540 million, below analysts’ average estimate of $584.4 million, according to LSEG data.
It sees third-quarter adjusted earnings of between 90 cents and $1 per share.
PTC, which counts companies such as Volkswagen and Indian motorcycle maker Eicher Motors’ Royal Enfield as clients, makes software that helps firms design, build and manage products throughout their life cycles.
Tightening its forecast for 2024, PTC now sees revenue of $2.27 billion to $2.34 billion, compared with its earlier expectations of $2.27 billion to $2.36 billion. Analysts on average project revenue of $2.32 billion, per LSEG data.
The company posted second-quarter revenue of $603 million, above analysts’ average estimate of $576.5 million,
(Reporting by Harshita Mary Varghese; Editing by Tasim Zahid)
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