July 31 (Reuters) - Industrial software maker PTC

forecast current-quarter revenue and profit above Wall

Street estimates on Wednesday, but missed revenue expectations

for the third quarter as enterprise spending remained tight.

High interest rates are prompting enterprise clients to

spend cautiously and rethink their plans to ramp-up digitization

and automate workflow to tap the AI boom.

Still, expectations of rate cuts from the U.S. Federal

Reserve this year could ease budget constraints for businesses,

boosting demand for companies such as PTC.

The company's software is used to design and repair

products ranging from planes to computers. It acquired

ServiceMax for

about $1.46 billion

in cash last year, a business that helps clients repair

assets such as wind turbines and medical devices.

PTC competes with larger companies including Autodesk ( ADSK )

and Siemens AG for computer-aided design

(CAD) software solutions.

It forecast fourth-quarter revenue of between $598

million and $648 million, compared with analysts' average

estimate of $616.9 million, according to LSEG data.

The company, which counts Volkswagen and Indian

motorcycle maker Eicher Motors' Royal Enfield as its

clients, expects fourth-quarter adjusted profit per share

between $1.30 and $1.66, compared with estimates of $1.37.

The company also trimmed the upper end of its fiscal 2024

revenue forecast. It now expects annual revenue of between $2.27

billion and $2.32 billion, compared with its earlier

expectations of $2.27 billion to $2.34 billion.

PTC's third-quarter revenue fell about 4% to $519 million

from a year earlier, missing estimates of $533.5 million.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Devika

Syamnath)