PTC’s Onshape-Arena Connection Enables Product Development

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PTC Inc.. PTC announced the availability of the Onshape-Arena connection, which integrates the company’s Onshape and Arena product lifecycle management (PLM) solutions.

It promotes continuous, cross-functional product development that can minimize cost and scheduling impacts on the manufacturing process. Existing Onshape and Arena customers don’t need to spend extra money or install and download new software to use the Onshape-Arena connection.

The Onshape-Arena connection can reduce the pain and coding that frequently arises when trying to integrate data and product lifecycle management systems, according to the company’s report. The aforementioned features allow product data to be passed from engineering to operations, which also benefits supply chain partners.

PTC Inc. Pricing and Consensus

PTC Inc. price consensus chart | Quote PTC Inc.

In January 2021, PTC completed the acquisition of Arena Solutions for $715 million. Arena Solutions’ SaaS offerings enable customers to optimize the product development process, improve supply chain relationships, and increase closed-loop quality processes.

The Arena Solutions acquisition complements the earlier acquisition of Onshape by PTC. The company acquired Onshape for $470 million in cash to augment its Creo and Windchill products with enhanced SaaS capabilities.

Based in Boston, Massachusetts, PTC provides worldwide software solutions and services that help manufacturing companies design, operate and manage products.

PTC’s performance benefited from strong product demand (digital transformation and SaaS) across all segments and geographies, as well as the recent acquisition of Intland Software. The company is also working to accelerate the SaaS transition by increasing the capacity of its Atlas platform and improving its SaaS capabilities.

The PLM and computer-aided design or CAD activities continue to record good growth. The company is seeing massive adoption of Creo CAD and Windchill solutions.

Recently, PTC and ITC Infotech, based in Bangalore firm the Strategic Partner Agreement announced in April. The transaction aims to accelerate customers’ digital transformation efforts and drive adoption of PTC’s Windchill PLM SaaS solution.

In the most recently reported quarter, PTC generated revenue of $462.5 million, up 6% year over year (up 12% at constant currency or cc). The top line missed the Zacks consensus estimate by 2.8%.

However, the company lowered its revenue forecast due to forex headwinds for fiscal 2022. Revenue for the fiscal year is now forecast in the $1.9 trillion to $1.95 trillion range (up 5 to 8% year-over-year) from the previous forecast of $1,905-$1,975. billion.

PTC currently carries a Zacks Rank #3 (Hold). Shares lost 6.4% vs. Of the industry down 23% over the past year.

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Actions to consider

Some top-ranked stocks in the broader tech space are Cadence Design Systems CDNS, badger meter BMI and Arista Networks A NET. Arista Networks and Cadence Design Systems currently sport a Zacks Rank #1 (Strong Buy), while Badger Meter currently sports a Zacks Rank #2 (Buy). You can see the full list of today’s Zacks #1 Rank stocks here.

The Zacks consensus estimate for CDNS 2022 earnings is pegged at $4.11 per share, up 5.7% over the past 60 days. The long-term earnings growth rate is expected to be 17.7%.

Cadence’s earnings have exceeded the Zacks consensus estimate for the past four quarters, averaging 9.8%. Shares of CDNS have jumped 6.3% over the past year.

The Zacks consensus estimate for BMI’s earnings in 2022 is pegged at $2.30 per share, up 6% over the past 60 days.

Earnings at Badger Meter have exceeded the Zacks consensus estimate in three of the previous four quarters, averaging 12.6%. BMI shares have lost 3.7% of their value over the past year.

Zacks’ consensus estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, up 10.1% over the past 60 days. The long-term earnings growth rate is expected to be 18.6%.

Arista Network’s earnings have exceeded Zacks’ consensus estimate for the past four quarters, averaging 10.1%. ANET shares have risen 39.3% over the past year.

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