Industrial software maker PTC raises annual forecast

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(Reuters) -Industrial software maker PTC raised its annual forecast and beat Wall Street estimates for third-quarter revenue on Wednesday, helped by robust demand for its design software products. 

The Boston-based company’s stock rose 3.2% after the bell.

Companies seeking to digitize and tap into the artificial intelligence boom are turning to PTC’s software to help them design, manufacture and maintain their products.

PTC is also a beneficiary of elevated demand from customers who are investing heavily in automating their workflows. Its product lifecycle management (PLM) software helps customers improve development time, cost and quality.

“While the macroeconomic picture still poses some uncertainty for our customers, we sense that we are past the point of maximum disruption, and look forward to productive customer engagements throughout the fourth quarter,” said CEO Neil Barua.

PTC now expects annual revenue to be between $2.57 billion and $2.63 billion, an increase from its earlier forecast of between $2.45 billion to $2.57 billion.

On an adjusted basis, PTC expects annual earnings per share in the range of $6.63 to $7.03, also above its prior projection of between $5.80 and $6.55 per share.

It posted revenue of $643.9 million for the third quarter ended June 30, ahead of analysts’ estimate of $582.9 million, according to data compiled by LSEG.

Adjusted earnings came in at $1.64 per share, beating an estimate of $1.21 apiece.

(Reporting by Juby Babu in Mexico City; Editing by Alan Barona)