Autodesk | $ADSK Stock | Shares Rocket Higher On Earnings Beat

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Autodesk, Inc. (NASDAQ: ADSK)

 

On Thursday August 23rd, 2018, Autodesk reported their second quarterly fiscal earnings after the market closed to regular trading. Immediately, the shares rocketed higher as the earnings beat caught some investors and traders by surprise.

In the crowded cloud and business software space, Autodesk has frequently had high expectations but not produced. However it seems they did so with this round of earnings.

The shares which close the regular training session down $0.63 or closing at $136.31, Rocket up to close at $146.90 which was up 10 house. The only analyst to recently comment on the condition of Autodesk operation was on August 8th 2018 by Guggenheim.

They resumed their coverage with a neutral rating and a $150 price Target. Autodesk shares went as high as $148 in the after-hours session. It seems like Guggenheim has a good pulse on the value of the shares.

Earning Results

The company reported a loss of $39.4 million in the fiscal second quarter. On a per-share basis, that equates to 18 cents. Earnings, adjusted for stock option expense and restructuring costs, came to 19 cents per share. This beat Wall Street expectations.

The average estimate of analysts was  17 cents per share. Revenues came in at $611.7 million in the quarter. This also beat expectations of $601 million.

Company Comments

Andrew Anagnost, Autodesk president and CEO had this to say to investors:

“Broad-based strength in customer demand and continued execution across our business helped accelerate growth in ARR and annualized revenue per subscription (ARPS). A superior user experience is motivating new customers to turn to Autodesk subscription and cloud offerings, and we continue to see a steady stream of existing maintenance customers migrating to subscription.”

Scott Herren, Autodesk CFO added:

“We posted strong results for several key metrics including billings, revenue, total deferred revenue, and earnings. We also generated positive cash flow from operating activities and expect to be cash flow positive for the year.  We’re pleased with our performance in the first half of the fiscal year and are confident in our ability to drive results for the remainder of the year.”

Technicals

The above price chart shows Autodesk from April of last year up to the present. It is easy to see the strong green up trending support line. Shares will likely open in the green rectangle area just above prior resistant.

The above price chart is Autodesk in the premarket after earnings were released. It is easy to see when the shares rocketed higher as soon as the earnings were announced and then based towards the end of the after hours session at 8 p.m.

Company Profile

Autodesk, Inc. operates as a design software and services company worldwide. The company offers AutoCAD, a professional design, drafting, detailing, and visualization software; and AutoCAD LT, a professional drafting and detailing software; computer-aided manufacturing (CAM) software for computer numeric control machining, inspection, and modelling for manufacturing; and AutoCAD Civil 3D, a surveying, design, analysis, and documentation solution for civil engineering, including land development, transportation, and environmental projects.

It also provides Maya and 3ds Max software products that offer 3D modeling, animation, effects, rendering, and compositing solutions; Revit software for building information modeling; and Inventor tool for 3D mechanical design, simulation, analysis, tooling, visualization, and documentation.

In addition, the company offers BIM 360, a construction management cloud-based software; Shotgun, a cloud-based software for review and production tracking in the media and entertainment industry; and Fusion 360, a 3D CAD, CAM, and computer-aided engineering tool.

It licenses or sells its products to customers in the architecture, engineering, and construction; manufacturing; and digital media, consumer, and entertainment industries directly, as well as through distributors and resellers. The company was founded in 1982 and is headquartered in San Rafael, California.-YahooFinance

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