Earnings from Ansys and Fiserv

We had two more Buy List earnings reports after the closing bell. First up is Ansys (ANSS). For Q2, the company reported revenue of $389.7 million and earnings of $1.55 per share. Wall Street had been expecting $1.16 per share. That’s down from $1.61 per share one year ago.

Ajei Gopal, the president and CEO said, “Q2 was a very strong quarter for Ansys, with revenue, operating margins and earnings exceeding the high end of our financial guidance. I’m excited that during the quarter we closed both the largest deal in our 50-year history as well as our largest sales agreement for new business. These results demonstrate the strength and resilience of our business and give us confidence for the future.”

Ansys now has a backlog of $846 million. That’s up 18% from a year ago.

For Q3, Ansys expects earnings of $1.10 to $1.34 per share on revenue between $347 million and $377 million. Wall Street had been expecting $1.41 per share on revenue of $376.4 million.

For the full year, Ansys sees earnings ranging between $5.75 and $6.35 per share on revenue of $1.570 billion to $1.645 billion. That’s an increase from the previous range of $5.61 to $6.23 per share. Wall Street had been expecting $5.93 per share on revenue of $1.59 billion.

Fiserv (FISV) reported Q2 earnings of 93 cents per share. That matched Wall Street’s view. It’s a drop of 4% compared with a year ago. Fiserv’s earnings report is a little complicated because of the recent merger with First Data. Adjusted revenue fell 12% to $3.22 billion.

“We demonstrated the strength and resilience of our business model during the quarter, producing significant free cash flow while delivering value for our clients. Our results also included excellent sales performance which provides strong market momentum entering the second half of the year,” said Frank Bisignano, President and Chief Executive Officer of Fiserv. “Most important, we are incredibly proud of our people who have displayed unwavering stamina, commitment and courage as we navigate the uncharted waters of a rapidly changing world.”

During the quarter, Fiserv bought back 5.7 million shares of stock for $550 million.

Fiserv said it expects EPS to grow by at least 10% this year. For context, Fiserv made $4.00 per share last year. This would be Fiserv’s 35th year in a row or double digit adjusted earnings growth.

Posted by on August 5th, 2020 at 4:41 pm


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