PTC Earnings: Current Results and Next Year’s Guidance Meet Our Expectations, Maintaining Our FVE

Narrow-moat-rated PTC reported fourth-quarter results that aligned with our expectations, and we are maintaining our fair value estimate of $156 per share. Results also generally met FactSet consensus expectations, but shares were down 5% as of this writing in after-hours trading, essentially reversing the initial gains of the day. We continue to view shares as overvalued and believe the multiple that the market is assigning is too high. In line with updated guidance, we expect revenue growth of roughly 11% for fiscal 2025 and adjusted earnings per share growth of 18%. We expect growth will decelerate thereafter.