Aspen Technology AZPN looks all set to unravel its second-quarter fiscal 2024 results on Feb 6.
An analysis of the Zacks Consensus Estimate for earnings reveals an anticipated valuation of $1.49 per share, in comparison to the previous quarter’s 35 cents per share. Meanwhile, market predictions for revenues are at $259.7 million, indicating an optimistic 6.9% uptick from the corresponding period in the previous year.
Uncharted Territory for Fortunes
The company’s performance in the fiscal second quarter is likely to have benefited from solid demand momentum across various markets. The company is expected to have benefited from strong demand in upstream and midstream energy owing to higher oil prices and rising upstream capital expenditure investments, especially from national oil companies.
Furthermore, the company is likely to have gained from positive trends in the refining market, such as increasing demand for fuels and capacity rationalization in Europe and North America. Moreover, there have been upbeat trends in the Engineering and Construction (E&C) sector, with increasing positive capital expenditure trends in both traditional energy and energy transition projects.
On the flip side, however, the company’s performance is bound to be affected as chemical sector customers are minimizing costs and investments to support margins amid weaker demand. Stiff competition and supply-chain disruptions remain significant concerns.
Recent Strides and Collaborations
In November 2023, the company kicked off a collaboration with EY to meet the growing demand in the industrial and energy markets and help clients achieve their sustainability targets. The partnership integrates AspenTech’s solutions for managing emissions reduction and energy efficiency with EY’s technology and services.
Furthermore, in the same month, the company announced enhanced performance and sustainability features in its asset optimization solutions portfolio — aspenONE. The refinements were designed to assist customers in creating and implementing reliable sustainability solutions.
Additionally, the company expanded its partnership with OMV Group in November 2023, in a move aimed at supporting the global integrated oil and gas firm’s energy transition efforts and the journey toward reaching net zero ambitions.
Calculated Forecasts
Though our tried-and-true model does not conclusively predict an earnings beat for Aspen Technology this time around, it is known that the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Aspen Technology currently has an Earnings ESP of 0.00% and a Zacks Rank #3.
Other Players in the Arena
Investors may contemplate other stocks as well, as our model identifies them as possessing the potential to outdo earnings this reporting cycle.
Expedia Group EXPE and Gartner IT along with Shopify Inc SHOP have showcased favorable Earnings ESP and Zacks Rank data, making them worth considering in the upcoming earnings season.
Further details on earnings and revenues projections for these stocks are available, with the promise of keeping investors informed on evolving developments.
