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Autodesk (ADSK) to Report Q1 Earnings: What's in Store?

Autodesk ADSK is scheduled to report first-quarter fiscal 2023 results on May 26.

The company anticipates revenues between $1.145 billion and $1.16 billion for the fiscal first quarter.  The Zacks Consensus Estimate for the same is pegged at $1.15 billion, suggesting growth of 16.4% from the year-ago quarter.

Autodesk projects non-GAAP earnings in the range of $1.30-$1.36 per share. The Zacks Consensus Estimate for the same stands at $1.33 per share, indicating a year-over-year rise of 29.1%.

Autodesk’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.5%.

Let’s see how things have shaped up before the announcement.

Autodesk, Inc. Price and EPS Surprise

Autodesk, Inc. Price and EPS Surprise
Autodesk, Inc. Price and EPS Surprise

Autodesk, Inc. price-eps-surprise | Autodesk, Inc. Quote

Factors to Consider

The accelerated digital transformation taking place across all industries is driving demand for Autodesk’s cloud solutions. The company’s fiscal first-quarter performance is likely to have benefited from solid growth in subscription revenues amid accelerated migration to the cloud by customers.

A solid uptick in the maintenance-to-subscription program, continued momentum in the new customer billings and steady renewals are expected to have acted as tailwinds. The robust adoption of the AutoCAD and AutoCAD LT product family is expected to have favored ADSK’s top line.

The company is likely to have gained from the robust performance of the Enterprise Business Agreements program. This is anticipated to have boosted Autodesk’s remaining performance obligation growth rates in the quarter to be reported.

The Autodesk Construction Cloud solution has been witnessing steady traction with owners, general contractors and subcontractors across the construction industry, which is anticipated to have favored the top line. In September 2021, Autodesk announced that more than 350,000 worldwide projects are leveraging Autodesk Construction Cloud to create highly-competent preconstruction workflows.

Gains from Autodesk Build, a field management solution launched in February 2021, and part of Autodesk Construction Cloud may have contributed to the to-be-reported quarter's top line.

Incremental gains from the uptake of BuildingConnected, a construction management offering that centralizes and streamlines the bidding process as well as comprises the Autodesk Construction Cloud builders network, is likely to get reflected in the first-quarter top line.

Synergies from the buyout of Innovyze, a leader in water infrastructure software, augur well. The buyout is likely to have strengthened Autodesk’s position in the end-to-end water infrastructure solutions space.

On its third-quarter fiscal 2022 earnings conference call, Autodesk stated that it intends to optimize facility costs by reducing its worldwide real estate footprint by 20% and focus more on the transformation to a hybrid workforce. This strategy aims at improving the company’s capital deployment to accelerate growth.

However, headwinds from supply-chain disruptions and eventual inflationary pressures, pandemic dynamics, labor shortage and country-specific challenges like that of Architecture, Engineering and Construction product margins in China might have impacted Autodesk’s first-quarter performance.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Autodesk this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

ADSK currently carries a Zacks Rank of #3 and has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Commercial Metals CMC, Dynagas LNG Partners DLNG and The Kroger Company KR have the right combination of elements to post an earnings beat in their upcoming releases.

Commercial Metals sports a Zacks Rank #1 and has an Earnings ESP of +38.66%. The company is scheduled to report third-quarter fiscal 2022 results on Jun 16. Commercial Metals’ earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 16%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CMC’s third-quarter earnings is pegged at $1.54 per share, indicating a year-over-year increase of 48.1%. The consensus mark for revenues stands at $2.19 billion, suggesting a year-over-year increase of 18.9%.

Dynagas LNG Partners is expected to report first-quarter 2022 results on Jun 16. The company carries a Zacks Rank #2 and has an Earnings ESP of +3.03% at present. Dynagas LNG Partners’ earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 8.8%.

The Zacks Consensus Estimate for quarterly earnings is pegged at 17 cents per share, suggesting a year-over-year decline of 19.1%. DLNG’s quarterly revenues are estimated to decline by 6.2% year over year to $31.4 million.

Kroger currently carries a Zacks Rank #2 and has an Earnings ESP of +2.95%. The company is anticipated to report its first-quarter fiscal 2023 results on Jun 16. Kroger’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 22.1%.

The Zacks Consensus Estimate for Kroger’s first-quarter earnings stands at $1.27 per share, implying a year-over-year increase of 6.7%. KR is estimated to report revenues of $43.22 billion, suggesting growth of 4.7% from the year-ago quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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The Kroger Co. (KR) : Free Stock Analysis Report
 
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Dynagas LNG Partners LP (DLNG) : Free Stock Analysis Report
 
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