Autodesk, Inc. Earnings Cheat Sheet: Exceeds Forecasts with Boost of Profit Rise

The Cheat Sheet

S&P 500 component Autodesk, Inc. reported net income above Wall Street’s expectations for the third quarter. 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.

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Autodesk Earnings Cheat Sheet for the Third Quarter

Results: Net income for Autodesk, Inc. rose to $72.8 million (32 cents per share) vs. $53.6 million (23 cents per share) in the same quarter a year earlier. This marks a rise of 35.8% from the year earlier quarter.
Revenue: Rose 15.1% to $548.6 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ADSK reported adjusted net income of 44 cents per share. By that measure, the company beat the mean estimate of 34 cents per share. Analysts were expecting revenue of $543.3 million.

Quoting Management: “Our business grew 15% in the third quarter as more and more people turned to Autodesk to help solve their most pressing design and engineering challenges,” said Carl Bass, Autodesk president and CEO.”Our strong revenue gains coupled with continued cost controls resulted in a healthy improvement in profitability and cash flow from operations. We experienced double-digit growth across all geographies, with particular strength in Asia Pacific.All of our businesses performed well, driven by continued adoption of our suites.”

Key Stats:
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 14.4%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 15.7% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 18.9% and in the first quarter, the figure rose 87.8%

Gross margin shrank 0.7 percentage point to 89.1%. The contraction appeared to be driven by increased costs, which rose 22.9% from the year earlier quarter while revenue rose 15.1%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by one cent in the second quarter and by one cent in the first quarter.

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 39 cents a share to 38 cents over the last ninety days. The average estimate for the fiscal year is $1.38 per share, down from $1.39 ninety days ago.

Competitors to Watch: Parametric Technology , ANSYS, Inc. , Adobe Systems Incorporated , Dassault Systemes S.A. (DASTY), Cimatron Ltd. , Synopsys, Inc. , Mentor Graphics Corp. , Oracle Corporation , Google Inc. , and Microsoft Corporation .

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

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