Autodesk Earnings: Tops Wall Street’s Profit Estimate

S&P 500 (NYSE:SPY) component Autodesk Inc. (NASDAQ:ADSK) posted lower net income in the third quarter compared with a year-earlier period. Autodesk is a design software and services company, offering progressive business solutions to customers in the architecture, engineering and construction, manufacturing, and digital media and entertainment industries.

Earnings season is back and more important than ever. Get our newest CHEAT SHEET stock picks now

Autodesk Inc. Earnings Cheat Sheet

Results: Net income for Autodesk Inc. fell to $29.3 million (13 cents per share) vs. $72.8 million (32 cents per share) a year earlier. This is a decline of 59.8% from the year-earlier quarter.

Revenue: Fell 0.1% to $548 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Autodesk Inc. reported adjusted net income of 47 cents per share. By that measure, the company beat the mean estimate of 31 cents per share. It fell short of the average revenue estimate of $586.2 million.

Quoting Management: “Our revenue results were disappointing and were primarily caused by a weakening demand environment,” said Carl Bass, Autodesk president and CEO. “While we experienced pockets of relative strength in the U.S., northern Europe, and Russia, most other markets around the world slowed during the quarter, most notably emerging markets. Despite our overall revenue shortfall, our ongoing focus on cost management delivered meaningful margin expansion and EPS above our guidance range.”

Key Stats:

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 15.1%.

The company’s net income has fallen in each of the last two quarters. In the second quarter, net income fell 9.3% from the year-earlier quarter.

The company trumped estimates last quarter after falling shy in the two quarters prior. In the second quarter, it missed the mark by 5 cents, and in the first quarter, it came in under estimates by 2 cents.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 45 cents a share to 42 cents over the last ninety days. At $1.47 per share, the average estimate for the fiscal year has fallen from $1.62 ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Is Obama Asking for Too Much Revenue?

Beer Wars: Craft Brewers Are Using This Strategy to Compete

Will Facebook Bulls Have the Last Laugh?