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Factors Setting the Tone for Autodesk's (ADSK) Q1 Earnings

·5 min read

Autodesk ADSK is slated to release first-quarter fiscal 2022 results on May 27.

The company anticipates to report revenues between $955 million and $970 million for the fiscal first quarter. It projects non-GAAP earnings to be in the range of 91 cents and 96 cents per share.

The Zacks Consensus Estimate for fiscal first-quarter 2022 earnings has remained steady at 94 cents per share over the past 30 days, suggesting an increase of 10.5% from the year-ago quarter reported figure.

Further, the consensus mark for revenues is pegged at $964.5 million, suggesting an increase of 8.9% from the year-ago quarter reported figure.

Autodesk’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 8.4%.

Let’s see how things have shaped up for the upcoming 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

Autodesk’s fiscal first-quarter results are expected to reflect robust growth in subscription revenues and rapid adoption of maintenance-to-subscription (M2S) program.

Additionally, strength in new customer billings and steady renewals are expected to have driven top-line growth in the quarter.

Autodesk Construction Cloud has been gaining traction with owners, general contractors and subcontractors across the construction industry, which is expected to have aided top-line growth in the soon to-be-reported quarter.

On Feb 9, Autodesk announced that Autodesk Build, a new project and field management solution and part of Autodesk Construction Cloud, is now available to users globally. Autodesk Build unifies best-in-class features from BIM 360 and PlanGrid and adds powerful new capabilities to make information immediately available across the entire construction team.

During the quarter, Autodesk announced a new set of products — public beta of Autodesk Tandem and Autodesk Takeoff — which are expected to have gained momentum.

Autodesk Takeoff empowers estimators to perform 2D and 3D quantification workflows from a common data environment to increase collaboration, speed and accuracy during the estimation process.

Autodesk Tandem harnesses the BIM data created throughout the project life cycle essential to creating a true digital twin of the asset. At the project’s completion, the project team can deliver a comprehensive digital handover to owners of easily accessible and insightful data, accelerating operational readiness and empowering better business decisions.

Moreover, Autodesk’s investment in Portland, OR based Innovyze, a global leader in water infrastructure software, positions Autodesk as a technology leader in end-to-end water infrastructure solutions.

The acquisition enhances Autodesk's growth potential by expanding Innovyze's global footprint and presence across the water infrastructure value chain from design through construction to operations and maintenance.

Meanwhile, the international expansion of BuildingConnected, a construction management solution that centralizes and streamlines the bidding process as well as encompasses the Autodesk Construction Cloud builders network, is expected to have aided top-line growth in the to-be-reported quarter.

Nonetheless, sluggish growth in Maintenance revenues due to the continued migration of maintenance plan subscriptions to subscription plan might have negatively impacted top-line performance.

Key Developments in Q1

On Apr 15, Autodesk announced that it has signed a definitive agreement to acquire Upchain, a provider of instant-on, cloud-based product lifecycle management (PLM) and product data management (PDM) solutions. The acquisition positions Autodesk to deliver more value for engineers, manufacturers, suppliers and other product stakeholders by increasing collaboration across the decentralized product value chain, regardless of CAD system.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Autodesk has an Earnings ESP of -0.93% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

American Eagle Outfitters, Inc. AEO has an Earnings ESP of +6.14% and carries a Zacks Rank of 2, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Best Buy Co., Inc. BBY has an Earnings ESP of +5.10% and carries a Zacks Rank of 3, currently.

Digital Turbine, Inc. APPS has an Earnings ESP of +6.98% and currently holds a Zacks Rank of 2.

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