Autodesk Earnings Top Forecasts For Fourth Quarter, But Guidance Soft

Design software firm Autodesk (ADSK) late Thursday beat Wall Street’s targets for its fiscal fourth quarter. The Autodesk earnings news sent the company’s shares higher in extended trading.


The San Rafael, Calif.-based company earned an adjusted 46 cents a share on sales of $737.3 million in the quarter ended Jan. 31. Analysts expected Autodesk earnings of 42 cents a share on sales of $707.2 million. In the year-earlier period, Autodesk lost 9 cents a share on sales of $553.8 million.

Autodesk stock rose 1.2% in after-hours trading on the stock market today. During the regular session, it dipped 0.8% to 163.01.

Autodesk, however, gave mixed guidance for its fiscal first quarter. Its outlook for sales topped views, but earnings per share came up short.

Autodesk Earnings Guidance Misses Views

For the current quarter, Autodesk expects to earn an adjusted 46 cents a share on sales of $740 million. That’s based on the midpoint of its guidance.

Wall Street was modeling Autodesk earnings of 57 cents a share on sales of $724 million in the quarter ending April 30. In the year-earlier quarter, it earned 6 cents a share on sales of $559.9 million.

For the full year, Autodesk guided to adjusted earnings per share of $2.81 on sales of $3.28 billion. Analysts were expecting earnings of $3.18 a share on sales of $3.28 billion.

Cloud Transition Effectively Finished

“We achieved multiple milestones in fiscal 2019 and are entering fiscal 2020 with strong momentum,” Chief Executive Andrew Anagnost said in a news release.

He added, “With less than 20% of our revenues coming from maintenance, we are effectively finished with our business model transition and now look forward to executing on our multiyear growth strategy.”

Autodesk has shifted to a software-as-a-service business model from licensed software.

“Our core design offerings and cloud-based solutions for construction, manufacturing and production are benefiting our customers as they undergo their own digital transformations, which offers an ongoing tailwind to our business,” Anagnost said.

Autodesk ended the fourth quarter with annualized recurring revenue of $2.75 billion, up 34% year over year. The stat is a key metric for cloud computing companies.

On Wednesday, industry peer Ansys (ANSS) posted better-than-expected fourth-quarter results, sending its stock modestly higher on Thursday.


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(Excerpt) Read more Here | 2019-02-28 22:26:25
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