Autodesk-indicators fall along with the rating
2022.11.23 07:57
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Autodesk-indicators fall along with the rating
Budrigannews.com – Even though Autodesk released an identical earnings report on Tuesday, the company’s shares fell in after-hours trading due to softer guidance. In addition, the business decreased its guidance for full-year billings.
Autodesk’s third-quarter earnings of $1.70 on $1.28 billion in revenue were in line with analyst expectations. Autodesk said it expects EPS for this quarter to be $1.80 (the midpoint), which is lower than the consensus estimate of $1.83. Despite the fact that revenue increased by 14% year-over-year, subscription net revenue came in at $1.19 billion, which was lower than the estimate of $1.21 billion.
Again, revenue is expected to be below the $1.33B estimate, between $1.303B and $1.318B.
The adjusted operating margin is anticipated to be 36%, and ADSK lowered its full-year billings guidance to a range of $5.57-5.67B, down from the previous range of $5.71-5.81B and below the consensus of $5.73B.
A $5 billion program for stock buybacks was also announced by the company.
Debbie Clifford, the CFO of the company, stated during the earnings call that clients are generally less interested in multi-year invoicing and are shifting toward annual contracts.
With a $210 price target for each share, Mizuho analysts downgraded ADSK from Buy to Neutral, down from $260.
In a downgrade note, they explained, “Given an increasingly uncertain operating environment, we find it difficult to continue recommending the name going into a more challenging FY24, and believe that a modest valuation discount to the broader enterprise software group is therefore justified.”
According to analysts at Oppenheimer, lower billings and guidance for free cash flow are “unlikely to satisfy investor appetites.”The analysts lowered the price target from $255 per share to $220.
In a note, the analysts stated, “We expect pressure on shares with investors looking for modest upside following positive partner commentary and peer group earnings.”
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