PTC stops guidance amid Schneider deal, Q4 profit tops estimates
Non-GAAP earnings per share of $2.03 beat the $1.98 consensus estimate, and revenue of $673.25 million was in line with the $668.33 million estimate. Revenue fell 25% from a year earlier.
Key takeaways
- PTC Inc. (PTC) said on Nov. 4 that non-GAAP earnings per share for its fiscal fourth quarter were $2.03, versus $3.41 a year earlier. Revenue was $673.25 million, down from $893.80 million. The company no longer provides guidance while its pending acquisition by Schneider Electric proceeds.
PTC said on Nov. 4 that non-GAAP earnings per share for its fiscal fourth quarter were $2.03, topping the $1.98 consensus estimate. Revenue of $673.25 million was in line with the $668.33 million estimate. Both figures fell from a year earlier.
PTC is a global software company that enables industrial and manufacturing companies to digitally transform how they engineer, manufacture and service physical products. It employs over 7,000 people and supports more than 30,000 customers.
Here's how the company did:
- Non-GAAP EPS: $2.03 per share vs. $3.41 a year earlier, $1.98 expected
- Revenue: $673.25 million vs. $893.80 million a year earlier, $668.33 million expected
- GAAP diluted EPS: $1.44 per share vs. $2.88 a year earlier
Revenue declined 25% from a year earlier, the company said in its results release. It said revenue was affected by the accounting rules under ASC 606, which change how some license revenue is recognized.
Full-year results
For the fiscal year ended Sept. 30, revenue was $2.73 billion, flat from a year earlier. GAAP diluted EPS rose to $8.93 per share from $6.08, while non-GAAP EPS rose 4% to $8.24 per share from $7.94.
The company's GAAP results for the year included a $463.9 million gain on the sale of its Kepware and ThingWorx businesses. It sold those businesses in the second quarter.
Guidance withdrawn
Because of the pending transaction, the company is no longer providing quarterly or annual guidance. It is also suspending its quarterly earnings conference calls.
As previously announced on Oct. 5, PTC entered into a definitive agreement to be acquired by Schneider Electric.
Cash flow and buybacks
Operating cash flow for the year was $898.6 million, up from $867.7 million a year earlier. Free cash flow was $872.66 million, compared with $856.69 million a year earlier.
The company repurchased $1.62 billion of its common stock during the fiscal year, up from $299.998 million a year earlier.
In the fourth quarter, the company said it incurred about $24 million of divestiture-related costs and about $75 million of divestiture-related cash taxes. It said those costs are not expected to recur in future years.