A Look at Altair Engineering's Upcoming Earnings Report

Altair Engineering ALTR is preparing to release its quarterly earnings on Wednesday, 2024-10-30. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Altair Engineering to report an earnings per share (EPS) of $0.16.

Investors in Altair Engineering are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Performance in Previous Earnings

During the last quarter, the company reported an EPS beat by $0.01, leading to a 2.97% drop in the share price on the subsequent day.

Stock Performance

Shares of Altair Engineering were trading at $102.0 as of October 28. Over the last 52-week period, shares are up 25.1%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Observations about Altair Engineering

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Altair Engineering.

The consensus rating for Altair Engineering is Buy, based on 3 analyst ratings. With an average one-year price target of $87.0, there's a potential 14.71% downside.

Analyzing Analyst Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Procore Technologies, Unity Software and Informatica, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Procore Technologies is maintaining an Outperform status according to analysts, with an average 1-year price target of $67.07, indicating a potential 34.25% downside.
• For Unity Software, analysts project an Neutral trajectory, with an average 1-year price target of $19.58, indicating a potential 80.8% downside.
• As per analysts' assessments, Informatica is favoring an Outperform trajectory, with an average 1-year price target of $33.0, suggesting a potential 67.65% downside.

Insights: Peer Analysis

The peer analysis summary outlines pivotal metrics for Procore Technologies, Unity Software and Informatica, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Altair Engineering ranks highest in revenue growth among its peers. It has the lowest gross profit margin. The company has the lowest return on equity.

Unveiling the Story Behind Altair Engineering

Altair Engineering Inc is a provider of enterprise-class engineering software enabling origination of the entire product lifecycle from concept design to in-service operation. The integrated suite of software provided by the company optimizes design performance across multiple disciplines encompassing structures, motion, fluids, thermal management, system modeling, and embedded systems. It operates through two segments: Software which includes the portfolio of software products such as solvers and optimization technology products, modeling and visualization tools, industrial and concept design tools, and others; and Client Engineering Services which provides client engineering services to support customers. Majority of its revenue comes from the software segment.

Altair Engineering: Financial Performance Dissected

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Altair Engineering showcased positive performance, achieving a revenue growth rate of 5.41% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Altair Engineering's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -3.46%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Altair Engineering's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -0.66%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Altair Engineering's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.38%, the company may face hurdles in achieving optimal financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.33.

To track all earnings releases for Altair Engineering visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.