Why Aspen Stock Is Plunging Today

  • Aspen Technology, Inc (NASDAQ: AZPN) is trading lower Thursday since its third-quarter earnings miss.

  • On Wednesday after-hours, Aspen Tech reported 172% revenue growth year-on-year to $229.88 million, missing the consensus of $285.64 million.

  • Adjusted EPS of $1.06 missed the consensus of $1.74.

  • The annual contract value was $854.6 million, up 11.2% Y/Y.

  • Annual spending for heritage AspenTech, was $712.0 million, up by 8.6% Y/Y.

  • License and solutions revenue grew to $136.3 million, up from $50.8 million a year ago. Maintenance revenue was $77.3 million, up from $27.3 million a year earlier. Services and other revenue grew to $16.3 million compared to $6.5 million a year ago.

  • AspenTech reported a loss from operations of $(78.5) million, compared to a loss of $(2.7) million a year ago.

  • Outlook: Aspen Tech expects FY23 revenue of $1.04 billion – $1.06 billion (consensus $1.17 billion) and adjusted EPS of $5.63 – $5.83 (consensus $7.06).

  • Analyst Ratings: Keybanc analyst Jason Celino maintains Aspen Tech with an Overweight, lowering the price target from $260 to $230.

  • Piper Sandler analyst Clarke Jeffries reiterates a Neutral and maintains a $195 price target.

  • William Blair analyst Matthew Pfau downgrades from Outperform to Market Perform.

  • Loop Capital analyst Mark Schappel maintains a Buy and lowers the price target from $270 to $240.

  • Price Action: AZPN shares traded lower by 25.9% at $171.70 on the last check Thursday.

Latest Ratings for AZPN

Date

Firm

Action

From

To

Nov 2021

Loop Capital

Initiates Coverage On

Hold

Oct 2021

Keybanc

Maintains

Overweight

Oct 2021

Keybanc

Maintains

Overweight

View More Analyst Ratings for AZPN

View the Latest Analyst Ratings

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Source: https://finance.yahoo.com/news/why-aspen-stock-plunging-today-193105156.html