July 25, 2018 / 5:40 AM / 9 months ago

Dassault Systemes raises guidance, services revenue disappoints

(Reuters) - Software maker Dassault Systemes (DAST.PA) raised its full-year earnings targets on Wednesday after posting an 8 percent rise in second-quarter revenue though its shares fell as service sales lagged.

Revenue rose to 827.8 million euros ($968 million) on a constant currency basis with licenses and other software revenue up 8 percent and services revenue up 4 percent.

Analysts noted growth in services, a business which involves helping clients use Dassault’s 3DExperience platform to meet their needs, came in well below guidance of 9-14 percent.

License revenue growth was at the midpoint of guidance, but analysts at Invest Securities said that could come as a disappointment after much higher levels of growth in previous quarters.

Dassault’s 3DExperience software platform includes applications for design and engineering that are used by companies in sectors such as energy, construction and consumer goods.

The shares were down 3.4 percent by 0830 GMT.

Dassault raised its full year earnings per share target to 2.95-3.00 euros ($3.45-$3.50) from 2.83-2.88 euros.

It now expects revenue growth of 9-10 percent, up from a previous target of 8-9 percent.

Reporting by Alan Charlish in Gdynia; editing by Sunil Nair and Jason Neely

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