Ansys misses quarterly estimates on weak enterprise spending

Ansys ANSS missed Wall Street estimates for first-quarter revenue and profit on Wednesday, hit by weak enterprise spending for its simulation software in an uncertain economy.

Shares of the Pittsburgh, Pennsylvania-based company fell more than 3% in aftermarket trading.

As businesses cut back on spending amid an uncertain economy, demand for the simulation and analysis solutions that Ansys provides has taken a hit.

U.S. export restrictions on China also weighed on demand, but the firm said the latter does not represent a significant portion of its overall business.

The company's products compete with Autodesk's ADSK Fusion 360, AutoCAD and Dassault Systems' DSY Solidworks.

Ansys reported revenue of $466.6 million for the first quarter ended March 31, compared with analysts' average estimate of $549.4 million, according to LSEG data.

Excluding items, it earned $1.39 per share, compared with an estimate of $1.91 per share.

In January, Synopsys SNPS, the largest maker of software used to design chips, said it would buy Ansys in a $35 billion cash-and-stock deal. The transaction is expected to be completed in the first half of 2025.