Parametric Technology Down 20% on Weak Q2 Earnings Expectations

Parametric Technology PMTC is trading lower on the session following its preliminary Q2 results announcement. The company now sees revenues of $300 million vs $314 million estimate and EPS of $0.26-0.28 vs $0.34 estimate. James Heppelmann, president and CEO of Parametric Technology, said: “Our second quarter license revenue was impacted by a large transaction in Europe that did not close and lower than expected performance in North America. Our maintenance and services business continued to perform well, as did our newly acquired MKS business, with the shortfall in Q2 revenue relative to our guidance of $305 to $320 million due to reduced license sales. While we are disappointed with our Q2 results, we are strategically positioned in attractive growth markets and remain confident in our ability to drive long-term growth and profitability.” Parametric Technology is currently trading at $21.64, a loss of $5.57 or 20.46%.