Preview of Bentley’s Q1 Earnings Report: Key Points to Watch

Bentley Systems, a provider of infrastructure design software, is set to release its quarterly earnings report tomorrow. In the previous quarter, Bentley met revenue expectations, achieving a revenue of $349.8 million, a 12.6% increase compared to the previous year. However, the quarter was considered disappointing due to slightly missing full-year revenue guidance and a significant deviation from EBITDA estimates. With earnings on the horizon, investors wonder whether Bentley is a favorable investment option.

In the upcoming quarter, analysts forecast an 8.2% year-on-year revenue growth, projecting revenues to reach $365.4 million, consistent with the 7.4% growth recorded in the same quarter the year before. Adjusted earnings are estimated to be $0.30 per share. Over the past month, analysts covering Bentley have maintained their estimates, indicating a sense of stability leading up to the earnings announcement. Notably, Bentley has fallen short of Wall Street revenue estimates four times within the past two years.

The software-as-a-service sector provides insight into what Bentley’s upcoming results might entail, as some of its peers have already reported their Q1 outcomes. For instance, Manhattan Associates exhibited a year-on-year revenue increase of 3.2%, surpassing analysts’ projections by 2.3%. Meanwhile, Pegasystems reported a remarkable 44.1% revenue growth, exceeding estimates by 33.1%. Following these outcomes, Manhattan Associates’ stock rose by 5.8%, and Pegasystems saw a robust 28.8% increase.

As a whole, the software-as-a-service segment has experienced positive investor sentiment, with stock prices rising by an average of 13.8% in the past month. Similarly, Bentley’s stock has climbed by 15.5% during this period, creating anticipation for the upcoming earnings call. The average analyst price target for Bentley stands at $50.26, indicating potential growth compared to the current share price of $45.19.

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