We are raising our full year earnings estimate by 6% to $2.50 a share. Next year $2.75-$3.25 a share represents a realistic target. The breakdown between annual and perpetual license sales, plus any impact by the economy, will influence the final amount. Additional acquisitions may be pursued, creating the potential for additional leverage. The long term outlook remains bright. Ansys is the leader in simulation software used by engineers and product designers. Organic growth is running in the 10%-15% range despite the relatively weak economic environment. Overall growth is being amplified by the company's ability to reinvest cash flow (50% pretax margins) in complementary acquisitions. Penetration of emerging markets could provide further impetus. Downside risk is mitigated by the scarcity of direct competition and a high degree of recurring revenue from existing customers.
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