Design software company Autodesk (NASDAQ:ADSK) will be reporting results tomorrow afternoon. Here’s what to expect.
Autodesk met analysts’ revenue expectations last quarter, reporting revenues of $1.64 billion, up 11.6% year on year. It was a very strong quarter for the company, with full-year guidance of accelerating revenue growth and a solid beat of analysts’ EBITDA estimates.
Is Autodesk a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Autodesk’s revenue to grow 13.4% year on year to $1.61 billion, improving from the 11.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.15 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Autodesk has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Autodesk’s peers in the design software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Procore delivered year-on-year revenue growth of 15.3%, beating analysts’ expectations by 2.6%, and Cadence reported revenues up 23.1%, in line with consensus estimates. Procore traded up 2.4% following the results while Cadence was also up 5.7%.
Read our full analysis of Procore’s results here and Cadence’s results here.
There has been positive sentiment among investors in the design software segment, with share prices up 20.4% on average over the last month. Autodesk is up 13.1% during the same time and is heading into earnings with an average analyst price target of $321.21 (compared to the current share price of $295.40).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.