Why Autodesk Is Friday’s Big Earnings Winner
After Autodesk reported its most recent quarterly results after the markets closed on Thursday, its shares soared early Friday.
When Autodesk Inc. (NASDAQ: ADSK) reported its most recent quarterly results after the markets closed on Thursday, The company said that it had $0.19 in earnings per share (EPS) and $611.7 million in revenue. The consensus estimates had called for $0.17 in EPS and revenue of $601 million. The same period of last year reportedly had a net loss of $0.11 per share and $501.8 million in revenue.
During the latest quarter, subscription plan annual recurring revenue (ARR) was $1.68 billion, an increase of 115% compared to the second quarter last year as reported, and 111% on a constant currency basis. Subscription plan subscriptions increased 290,000 from the first quarter of fiscal 2019 to 2.86 million at the end of the second quarter.
Total ARR was $2.35 billion, an increase of 28% compared to the second quarter last year as reported, and 27% on a constant currency basis.
Deferred revenue was $1.80 billion, an increase of 1% compared to the second quarter last year. Total deferred revenue (deferred revenue plus unbilled deferred revenue) was $2.21 billion, an increase of about 20% compared to the second quarter last year.
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Looking ahead to the fiscal third quarter, the company expects to see EPS in the range of $0.24 to $0.28 and revenues between $635 million and $645 million. Consensus estimates call for $0.28 in EPS and $634.2 million in revenue.
Andrew Anagnost, Autodesk president and CEO, commented:
Broad-based strength in customer demand and continued execution across our business helped accelerate growth in ARR and annualized revenue per subscription (ARPS). A superior user experience is motivating new customers to turn to Autodesk subscription and cloud offerings, and we continue to see a steady stream of existing maintenance customers migrating to subscription.
Shares of Autodesk closed Thursday at $136.31, with a consensus analyst price target of $153.77 and a 52-week range of $101.55 to $142.94. Following the announcement, the stock was up about 10% at $150.67 in early trading indications Friday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
