Design software company Autodesk (NASDAQ: ADSK) will be reporting results tomorrow after market close. Here’s what to look for.
Autodesk met analysts’ revenue expectations last quarter, reporting revenues of $1.57 billion, up 11% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but annual recurring revenue in line with analysts’ estimates.
Is Autodesk a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Autodesk’s revenue to grow 11.1% year on year to $1.63 billion, in line with the 11.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.14 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Autodesk has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Autodesk’s peers in the design software segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Unity’s revenues decreased 25% year on year, beating analysts’ expectations by 5.9%, and Cadence reported revenues up 26.9%, in line with consensus estimates. Unity traded up 31.8% following the results while Cadence was down 8.8%.
Read our full analysis of Unity’s results here and Cadence’s results here.
Inflation has progressed towards the Fed’s 2% goal as of late, leading to strong stock market performance. Recent rate cuts and the 2024 Presidential election's conclusion added further sparks to the market, and while some of the design software stocks have shown solid performance, the group has generally underperformed, with share prices down 8.1% on average over the last month. Autodesk is down 8.1% during the same time and is heading into earnings with an average analyst price target of $335.95 (compared to the current share price of $284.96).
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