Altair Engineering (ALTR) Q2 Earnings and Revenue Beat Estimates

Altair Engineering Inc. (ALTR) Q2 2022 Earnings Call Transcript

Altair Engineering (ALTR) Q2 Earnings and Revenue Beat Estimates

Altair Engineering Inc. (ALTR) recently released its quarterly earnings report, surpassing analysts’ expectations. The company reported earnings per share of $0.24, beating the Zacks Consensus Estimate of $0.22 per share. This represents an increase in earnings per share compared to the year-ago figure of $0.19, adjusted for non-recurring items.

This quarterly report represents an earnings surprise, as analysts had expected the company to post earnings per share of $0.22. Altair Engineering has delivered earnings surprises in the last four quarters, surpassing consensus EPS estimates four times.

Altair Engineering belongs to the Zacks Engineering – R&D Services industry, which posted revenue of $1.02 billion for the quarter ended June, surpassing the Zacks Consensus Estimate. The company’s year-ago revenue was $0.87 billion. Altair Engineering has topped consensus revenue estimates four times in the last four quarters.

The stock’s immediate price movement based on the recently released numbers was not immediately clear, as future earnings expectations depend largely on management commentary during the earnings call. Altair Engineering shares are up 24% since the beginning of the year, outperforming the S&P 500’s gain of 18%.

While Altair Engineering has outperformed the market so far this year, the question on investors’ minds is what’s next for the stock. One reliable measure to help investors address a company’s earnings outlook includes current consensus earnings expectations for the coming quarter, as well as changes lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track revisions to Zacks Rank, a tried-and-tested rating tool with an impressive track record harnessing the power of earnings estimate revisions.