Autodesk Tumbles After Reporting 3rd-Quarter Results
- By Alberto Abaterusso
Autodesk Inc. (ADSK) reported its financial results for the third quarter of fiscal 2018 after the market closed Nov. 28. The stock tumbled 10.64% in after-hours trading following the announcement.
Warning! GuruFocus has detected 6 Warning Signs with ADSK. Click here to check it out.
The intrinsic value of ADSK
The software company closed the quarter with a loss of 12 cents, an improvement from a loss of 18 cents per share in the prior-year quarter. The company"s earnings beat expectations by one cent.
Quarterly revenue of $515.3 million also beat expectations of $514.1 million and grew 5.2% from the comparable quarter of 2017.
The trend in Autodesk"s revenue over the last 5 quarters and the last 3 fiscal years is illustrated in the two charts below.
Chart 1.
Chart 2.
Total annualized recurring revenue increased by 25% year over year to $1.9 billion, of which $924 million was for subscription plans, an 108% increase year over year, and about $978 million was for a maintenance plan, a 10% decline year over year.
The company said "subscription plan subscriptions benefited from 110,000 maintenance subscribers that converted to product subscription under the maintenance-to-subscription program."
In the third quarter, total subscriptions increased by 146,000 to 3.6 million and subscriptions for the subscription plan increased by 307,000 to 1.9 million from the second quarter of 2018.
Deferred revenue was $1.76 billion - a 15% increase year over year - while deferred revenue of $148 million was unbilled.
For the fourth quarter, the company expects revenue between $537 million and $547 million. Analysts forecast revenue of $544.8 million. Autodesk projects EPS will range between a loss of 14 cents and a loss of 10 cents. Analysts expect a loss of 14 cents.
For full fiscal 2018, Autodesk expects revenue between $2.04 billion and $2.05 billion. Earnings for the year are projected to range from a loss of 53 cents to 49 cents per share. The consensus is a loss of 54 cents.
Autodesk also announced it will implement a restructuring plan "to streamline the organization and re-balance resources to better align with the company"s priorities" and achieve its long-term goals.
As part of this restructuring, Autodesk anticipates pre-tax restructuring charges between $135 million and $149 million.
On its balance sheet, the company reported having approximately $1.45 billion in cash and securities, or about $6.6 per share. Total long-term debt amounts to $1.58 billion, while the total equity is $107.3 million.
Autodesk is currently trading around $129.95 per share with a market capitalization of $28.48 billion, a price-book (P/B) ratio of 90.31 and a price-sales (P/S) ratio of 14.66.
For Autodesk, analysts set an average target price of $133.57 per share. The recommendation rating is 1.9 out of 5.
Disclosure: I have no positions in Autodesk.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 6 Warning Signs with ADSK. Click here to check it out.
The intrinsic value of ADSK
