home - about - advertise     
 
 
Sponsors
Navigation
Partners

 
PTC Feature

PTC Stock Drops 20% After Guidance Warning

excerpted from

Full article is available for a fee

Randall S. Newton, July 16, 2007

See Also

  PTC website
  PRO/ENGINEER Reading Room - at CADdigest.com
  PRO/ENGINEER directory at TenLinks

PTC told Wall Street on Thursday, July 5 that its previous earning guidance was wrong, and revised estimates down $10 million for the quarter. The next day Wall Street sent PTC a message; as TheStreet.com put it, “Parametric Tanks on Warning.” PTC stock closed at 17.23, down 20.12% in one day.

In the announcement, PTC (NASDAQ: PMTC) said it expects revenue for the fiscal 2007 third quarter ended June 30, 2007 to be approximately $225 million, compared with previous guidance of $235 million to $240 million. PTC said lower-than-expected license revenue was the primary reason for the shortfall.

“Having met or exceeded our guidance for the past 15 consecutive quarters, I am disappointed that our revenue and earnings results will be below our expectations for the third quarter,” said C. Richard Harrison, president and chief executive officer.

Wall Street analysts who cover PTC were quick to offer their assessment. Typical was the word from Goldman Sachs analyst Sasa Zorovic who downgraded the stock to “Neutral” from “Buy,” reducing his price target to $20 from $24.

Based on preliminary third quarter license revenue results, PTC anticipates that it will lower its fourth quarter and fiscal year 2007 revenue and earnings guidance. The company will discuss detailed third quarter results and offer revised guidance during its third quarter earnings announcement, scheduled for July 25, 2007.

Read more...

  • What Went Wrong?

The full article is available for a fee at CADCAMNet.

More Select Pro/ENGINEER Articles

 
CADdigest Weekly
Email (required) *

A week's worth of articles will be emailed to you. See latest issue .