Industrial software maker PTC forecast fourth-quarter revenue below estimates on Wednesday, as economic uncertainty forces companies to cut back on spending to bolster their bottom lines.
Companies in the United States have been tightening their budgets as the Federal Reserve’s aggressive interest rate hikes increase the cost of borrowing.
PTC completed the acquisition of cloud-based software provider ServiceMax for $1.46 billion earlier this year, as it looks to expand its portfolio of product-lifecycle management offerings.
It expects fourth-quarter revenue between $540 million and $570 million, below analysts’ estimate of $572.9 million, according to IBES data from Refinitiv.
PTC also announced that Neil Barua, president of its Service Lifecycle Management business, will succeed James Heppelmann as CEO when the latter, a company veteran of 26 years, retires next February.
The Boston-based company makes software that helps companies design, build and manage products throughout their life cycles.
It reported third-quarter revenue of $542 million, compared with $462 million, a year earlier. Analysts expected the firm to report quarterly revenue of $523.7 billion, according to Refinitiv IBES data.
Excluding items, PTC posted a profit of 99 cents per share in the April-to-June period, compared with estimates of $1 per share.
(Reporting by Akash Sriram in Bengaluru; Editing by Pooja Desai)
