Autodesk Not On Auto Pilot (ADSK)
November 4, 2008 by Douglas A. McIntyre
Autodesk, Inc. (NASDAQ: ADSK) came out this morning with an updated guidance, and you can guess that the guidance was lowered like it has been at so many other established technology and software firms. The software maker sees earnings at $0.53 to $0.55 per share and revenue of $604 million to $607 million.
Thomson Reuters (First Call) has estimates pegged at $0.55 EPS and$623.7 million in revenue. But there is an issue to consider in thiswarning that might make this one viewed as "not that bad consideringthe climate."
Carl Bass, CEO, comments on the current climate which may ring the sameas what you have heard elsewhere: "The sharp downturn of the globaleconomy is substantially impacting our business… Demand for ourproducts fell dramatically in October in all geographies as thefinancial crisis worsened. With many of our customers and partnersunable to secure credit, projects are being delayed and our business isbeing impacted."
Shares were down 4% right after the announcement in the earlypre-market indications. But now shares are down less than 1% at$22.70. This stock has sold off almost 60% from its 52-week highs.You have to go to the doldrums of the recession in 2002 and then backto the tech bubble bursting in 2000 to find performance where the stockfell so hard.
Jon C. Ogg
November 4, 2008
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