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It’s been a month since Aspen Technology’s (AZPN) last earnings report.
Will the recent negative trend continue until the next earnings report, or is Aspen Technology expected to break?Before we dive into the reaction from investors and analysts lately, let’s take a look at the most recent earnings report to better understand the factors.
Aspen Technology reported non-GAAP earnings for the current quarter of fiscal 2022 of $1. 20 consistent with the percentage, 16. 1% of Zacks’ consensus estimate. The company reported non-GAAP earnings of $2. 04 consistent with the percentage consistent in the prior-year quarter. Revenue of $171. 4 million fell short of Zacks’ consensus estimate of 8. 9%. The company reported revenue of $233. 7 million in the prior-year quarter. The company also announced that it is on track to complete the acquisition of Emerson in the fourth quarter of fiscal 2022. In October 2021, Aspen Technology and Emerson signed an agreement. Under the terms, Aspen will join with Emerson’s OSI Inc and geological simulation software business to shape a new venture. The decrease was due to strong bookings (including the largest renovation ever made through the company) recorded in the last quarter.
License revenue (67. 8% of revenue) decreased 35. 6% year-over-year to $116. 1 million. Maintenance revenue (28. 2%) increased 3. 3% year-over-year to $48. 4 million. Last quarter’s figure was $6. 9 million. As of December 31, 2021, annual expenses (which Aspen Technology defines as the annualization of all term licensing and maintenance agreements at the end of the quarter) were $640 million, an increase of 6% year-over-year and 1. 7% quarter-over-quarter.
Gross profit decreased 28. 7% year-over-year to $156. 5 million. As a percentage of overall revenue, the figure contracted through 260 base issues (bps) on an annual basis of 91. 3%. Acquisition plans and integration expenses similar to emerson’s ongoing acquisition. Non-GAAP operating margin 53. 8%, compared to an operating margin of 69. 4% in the prior year quarter.
As of December 31, 2021, money and money equivalents were $211. 4 million, compared to $248 million as of September 30, 2021. The Company’s total loans, net of debt issuance costs, were $285. 2 million as of December 31, 2021. The Company generated $41. 3 million in trading money, compared to $32. 7 million in the prior quarter. Non-GAAP loose money was $51. 9 million in the current fiscal quarter. The company repurchased 439,000 shares in the current fiscal quarter for $65 million.
Driven through strong functionality in the first half and an advanced call to trends across several lines of business, Aspen Technology raised the outlook for fiscal 2022. For fiscal 2022, Aspen Technology expects revenue in diversity of $737 million to $754 million compared to previous forecasts of $702 million to $737 million. The company now expects an annual spending expansion rate of between 7% and 8%, while total reserves are expected to range from $814 million to $840 million. Previously, the company expected an annual spending expansion rate of between 5% and 7% and reserves were expected to be between $766 million and $819 million. through the previously guided action. Management now expects a non-GAAP operating revenue stream of between $397 million and $409 million. The free money is expected to be between $280 million and $290 million. The money was expected to be between $275 million and $285 million.
How have the estimates been since then?
It turns out that the revision of estimates has tended to pile up over the past month.
The consensus estimates up to 33. 48% as a result of these changes.
VGM Scores
Currently, Aspen Technology has a mediocre expansion score of F, but its Momentum score is improving a lot with a B. However, inventory has been given a D score on the side, putting it at the bottom of 40% for this investment. strategy.
In general, the name has an overall VGM score of F. If you don’t focus on a strategy, this score is what interests you.
Perspectives
Estimates have been upward for stocks, and the magnitude of those revisions looks promising. In particular, Aspen Technology has a range of Zacks No. 3 (Hold). We expect the name to be back online in the coming months.
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