Autodesk Earnings: Here’s Why Investors are Not Happy Now
Autodesk, Inc. (NASDAQ:ADSK) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5%.
Autodesk, Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 6.25% to $0.45 in the quarter versus EPS of $0.48 in the year-earlier quarter.
Revenue: Decreased 1.23% to $561.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Autodesk, Inc. reported adjusted EPS income of $0.45 per share. By that measure, the company beat the mean analyst estimate of $0.42. It beat the average revenue estimate of $560.56 million.
Quoting Management: “Our second quarter was marked by strength in our Architecture, Engineering and Construction (NYSE:AEC) business segment and continued growth in suites,” said Carl Bass, Autodesk president and CEO. “Growth in these vital areas was offset by mixed contributions from other parts of the business. On the product side, we strengthened and expanded our leading product portfolio with new desktop, cloud and mobile offerings.”
Key Stats (on next page)…
Revenue decreased 1.53% from $570.4 million in the previous quarter. EPS increased 7.14% from $0.42 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.51 to a profit $0.50. For the current year, the average estimate has moved down from a profit of $1.97 to a profit of $1.94 over the last ninety days.
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. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)