Autodesk (ADSK) to Report Q2 Earnings: What's in Store?
Autodesk ADSK is scheduled to report second-quarter fiscal 2024 results on Aug 23.
The company anticipates revenues between $1.315 billion and $1.325 billion for the fiscal second quarter. The Zacks Consensus Estimate for the same is pegged at $1.32 billion, suggesting growth of 6.5% from the year-ago quarter.
Autodesk projects non-GAAP earnings in the band of $1.70-$1.74 per share. The Zacks Consensus Estimate for the same is pegged at $1.72 per share, indicating a 4.2% year-over-year rise.
Autodesk’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.1%.
Let’s see how things have shaped up before the announcement.
Autodesk, Inc. Price and EPS Surprise
Autodesk, Inc. price-eps-surprise | Autodesk, Inc. Quote
Factors to Note
The accelerated digital transformation taking place across all industries is driving the demand for Autodesk’s cloud solutions. The company’s fiscal second-quarter performance is likely to have benefited from solid growth in subscription revenues amid accelerated cloud migration. The consensus mark for subscription revenues is pegged at $1.24 billion.
A solid uptick in the maintenance-to-subscription program, continued momentum in 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 Zacks Consensus Estimate for the AutoCAD and AutoCAD LT product family’s second-quarter revenues is pegged at $371 million.
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. Gains from Autodesk Build, a field management solution and part of the Autodesk Construction Cloud, are expected to have contributed to the to-be-reported quarter's top line.
The Zacks Consensus Estimate for the Media & Entertainment, Manufacturing and Other product family’s second-quarter revenues is pegged at $51 million, $264 million and $10.9 million, respectively.
Incremental gains from the uptake of the Autodesk Building Information Modeling 360 solution, which is a holistic process of integrating structured and multi-disciplinary data to produce a digital representation of assets from planning and design to construction and operations, are likely to get reflected in the second quarter top line. However, inflationary pressures, foreign exchange movements, labor shortages and macroeconomic headwinds might have impacted ADSK’s fiscal second-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.
Though ADSK currently carries a Zacks Rank of 3, it 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, Workday WDAY, PagSeguro Digital PAGS and Science Applications International SAIC have the right combination of elements to post an earnings beat in their upcoming releases.
Workday sports a Zacks Rank #1 and has an Earnings ESP of +1.82%. The company is scheduled to report second-quarter fiscal 2024 results on Aug 24. Its earnings beat the Zacks Consensus Estimate in the preceding four quarters, with the average surprise being 13.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Workday’s second-quarter earnings stands at $1.25 per share, 50.6% higher than the year-ago quarter. It is estimated to report revenues of $1.77 billion, which suggests an increase of approximately 15.5% from the year-ago quarter.
PagSeguro carries a Zacks Rank #2 and has an Earnings ESP of +6.93%. The company is anticipated to report second-quarter 2023 results on Aug 24. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 36.7%.
The Zacks Consensus Estimate for PAGS’ second-quarter earnings is pegged at 25 cents per share, indicating a year-over-year decline of 46.8%. The consensus mark for revenues stands at $689.4 million, suggesting a year-over-year decrease of 13.2%.
Science Applications is anticipated to report second-quarter fiscal 2024 results on Sep 7. The company has a Zacks Rank #3 and an Earnings ESP of +5.00% at present. Science Applications’ earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 14.5%.
The Zacks Consensus Estimate for SAIC’s second-quarter earnings is pegged at $1.60 per share, suggesting a decline of 8.6% from the year-ago quarter’s earnings of $1.75. Science Applications’ quarterly revenues are estimated to decrease 7.6% year over year to $1.69 billion.
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Autodesk, Inc. (ADSK) : Free Stock Analysis Report
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