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Factors Setting the Tone for Autodesk's (ADSK) Q2 Earnings

Zacks Equity Research
·4 min read

Autodesk, Inc. ADSK is slated to release second-quarter fiscal 2021 results on Aug 25.

The company anticipates to report revenues between $890 million and $905 million for the fiscal second quarter. It projects non-GAAP earnings to be in the range of 86-92 cents per share.

The Zacks Consensus Estimate for fiscal second-quarter 2021 earnings has remained steady at 90 cents per share over the past 30 days, suggesting an increase of 38.5% from the year-ago quarter reported figure. Further, the consensus mark for revenues is pegged at $901 million, suggesting an increase of 13.1% from the year-ago quarter reported figure.

Autodesk’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average being 5.14%.
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 second-quarter performance is expected to have benefited from robust growth in subscription revenues and rapid adoption of maintenance-to-subscription (M2S) program.

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

Meanwhile, Autodesk Construction Cloud is 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.

The early release of the BIM 360 Assets module within Autodesk Construction Cloud that enables construction teams to track and manage project assets through the entire building lifecycle — from design through handover — from one centralized location is expected to have aided the adoption of Autodesk’s Construction Cloud in the to-be-reported quarter.

Notably, Autodesk added new APIs, enabling custom connections for BIM 360 and PlanGrid, and 15 new native integrations and bringing the total number of direct integrations in the Autodesk Construction Cloud ecosystem up to more than 140 in the to-be-reported quarter.

Moreover, Autodesk’s investment in Aurigo Software in the first fiscal quarter is likely to have helped it to fortify its construction business, in turn, bolstering the top line. Aurigo’s integration with Autodesk Construction Cloud, a powerful portfolio of construction management software and services, gives owners a single end-to-end technology platform for design, planning, construction and operations of infrastructure and private assets.

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.

Moreover, spending on software is likely to have declined as commercial IT buyers and consumers implemented rapid cuts in capital spending, in line with declining revenues, profits, market valuations, and employee headcount due to coronavirus-led business uncertainty. The top line is expected to reflect the impact of the decline in spending.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Autodesk has an Earnings ESP of +4.44% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat in their upcoming releases:

Ambarella, Inc. AMBA has an Earnings ESP of +100.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bill.com Holdings, Inc. BILL has an Earnings ESP of +10.45% and a Zacks Rank #3.

eGain Corporation EGAN has an Earnings ESP of +55.56% and a Zacks Rank #3.

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