Autodesk (ADSK) Q4 Earnings Report Preview: What To Look For
Design software company Autodesk (NASDAQ:ADSK) will be reporting earnings tomorrow after market hours. Here's what to expect.
Last quarter Autodesk reported revenues of $1.41 billion, up 10.5% year on year, beating analyst revenue expectations by 1.9%. It was a mixed quarter for the company, with revenue and EPS exceeding analysts' estimates, driven by better-than-expected billings and outperformance in its Architecture, Engineering, and Construction ("AEC") division. On the other hand, its free cash flow and revenue guidance for next quarter fell short of Wall Street's projections.
Is Autodesk buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Autodesk's revenue to grow 8.6% year on year to $1.43 billion, in line with the 8.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.95 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.1%.
Looking at Autodesk's peers in the design software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Procore Technologies delivered top-line growth of 28.7% year on year, beating analyst estimates by 4.7% and Cadence reported revenues up 18.8% year on year, exceeding estimates by 0.7%. Procore Technologies traded up 6.4% on the results, Cadence was down 5.2%.
Read our full analysis of Procore Technologies's results here and Cadence's results here.
Investors in the design software segment have had steady hands going into the earnings, with the stocks up on average 0.8% over the last month. Autodesk is down 0.3% during the same time, and is heading into the earnings with analyst price target of $254.3, compared to share price of $255.8.
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