A few years ago, Autodesk ceo Carl Bass announced his plan to grow the company 15% a year for the next five years. The compounding works out to a doubling (101%) of revenues in a half-decade. But then a little thing called "the recession" got in the way, and ADSK's recent revenues went negative instead.
Now Jim Heppelmann, the president of PTC, ups the ante, when he this week declared:
Mr Heppelmann will, of course, have an easier job than Mr Bass did, for PTC is starting at the end of recession, when earnings have dipped extra low -- whereas Mr Bass had begun his quest when revenues were near their peak, as it turned out.
You would think financial types would l-o-v-e the huge increase in future earnings, but the PMTC share price settled back to its traditional $16.50 level following a one-day boost due to the preceding quarter's uplifting results.
Now Jim Heppelmann, the president of PTC, ups the ante, when he this week declared:
We want to do 20% earnings growth five years in a row.Through the magic of compounding, that's 149% of growth in earnings by 2015. He confides in the financial analysts the sparse ingredients of his secret sauce: "...the recipe for how we want to do that is three parts revenue growth, one part margin expansion [by growing revenues faster than expenses]."
Mr Heppelmann will, of course, have an easier job than Mr Bass did, for PTC is starting at the end of recession, when earnings have dipped extra low -- whereas Mr Bass had begun his quest when revenues were near their peak, as it turned out.
You would think financial types would l-o-v-e the huge increase in future earnings, but the PMTC share price settled back to its traditional $16.50 level following a one-day boost due to the preceding quarter's uplifting results.
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