Buy This High-Growth Software Stock on a Dip?
Another quarter, and another slightly disappointing set of earnings from industrial software company PTC (NASDAQ: PTC). The results were in line with management's guidance, and the company remains on track in 2021. Still, investors were entitled to expect a bit more given the improving economy and the fact that PTC's partner , Rockwell Automation, updated sales guidance toward the high end of its previous range. Rockwell provides automation solutions and PTC offers complimentary internet of things (IoT) and augmented reality (AR) solutions. Is it time to buy the stock on a dip or walk away?
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On a headline basis, the results were good, and there was even a guidance raise for investors. However, on closer inspection, it's clear that the guidance hike is largely down to favorable currency movements. Here's a look at the headline guidance. For reference, the annual run rate (ARR) is defined as the annualized value of active "subscription software, cloud, SaaS, and support contracts" at the end of the period. It's the key measure that management advises investors to follow.
Source Fool.com
