(Reuters) – Industrial software maker PTC forecast first-quarter revenue below estimates on Wednesday, signaling continued weakness in demand for its industrial design and testing software as companies keep a tight leash on budgets.
Businesses have dialed back on software budgets in the wake of high-interest rates and an uncertain economy, weighing on demand for companies such as PTC.
With companies like Volkswagen and Indian motorcycle maker Eicher Motors’ Royal Enfield as clients, PTC makes software that helps firms design, build and manage products throughout their life cycles.
The Boston-based company also said that its board has authorized a share repurchase of up to $2 billion through September 2027.
The company expects revenue to be between $540 million and $570 million in the first quarter, below analysts’ average estimate of $609.1 million, according to data complied by LSEG.
PTC projected adjusted earnings per share of 75 cents to 95 cents for the quarter, compared with analysts’ estimate of $1.33.
For the fiscal year 2025, PTC expects revenue to be between $2.51 billion and $2.61 billion, the midpoint of which is above analysts’ average estimate of $2.54 billion.
It posted revenue of $626.5 million for the fourth quarter ended Sept. 30, compared with the average analyst estimates of $620.5 million.
(Reporting by Juby Babu in Mexico City; Editing by Maju Samuel)
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