ANSYS, Inc. (NASDAQ: ANSS) stock lost over 9.4% on 25th Feb, 2021 (As of 12:19:50 UTC-5; Source: Google finance) after the company reported the earnings of $215.63 million for the fourth quarter of FY 20 compared to $165.85 million in last year’s fourth quarter, which represents an increase of 30% year on year. The company has posted better than expected results for the fourth quarter of FY 20. During the fiscal 2020, the company closed the three largest license deals in the company history. The company has added to the market-leading portfolio with the acquisitions of two industry pioneers, Lumerical Inc. and Analytical Graphics, Inc. (AGI). And the company has recently released the latest version of the product portfolio, Ansys 2021 R1. ACV grew 20% and 9% in constant currency for the fourth quarter and the year, reached record levels of recurring sources at 83% for the quarter and 82% for the year. The company delivered both record operating cash flow of $547 million (increase of 9%) and deferred revenue and backlog of $967 million during the fiscal 2020. These results reflect the resiliency of the business model and the incredible efforts and dedication of the Ansys employees during unprecedented times. Due to the prolonged state of the global pandemic, the company remains cautiously optimistic as they look into the first half of 2021.
ANSS in the fourth quarter of FY 20 has reported the adjusted earnings per share of $2.96, beating the analysts’ estimates for the adjusted earnings per share of $2.51, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 28.3 percent to $627.77 million in the fourth quarter of FY 20, beating the analysts’ estimates for revenue by 11.2%. The company’s adjusted operating margin expanded to 51.6% in Q4 2020, compared to 48% in Q4 2019.
Ansys expects Q1 non-GAAP EPS to be in a range of $0.73 to $0.90. That compares with the consensus estimate of $1.08. The company also projects Q1 non-GAAP revenue in a range of $335 million to $360 million versus the analysts average estimate of $358 million.
For full-year 2021, the company expects non-GAAP EPS to be in the range of $6.44 to $6.92 and non-GAAP revenue expected to be in the range of $1.79 billion to $1.88 billion. That compares with the Street estimates of $7.08 and $1.83 billion respectively. For fiscal 2021, the company expects ACV to be in the range of $1,750.0 – $1,825.0 million and Operating cash flows to be in the range of $475.0 – $515.0 million.