Autodesk Exceeds Earnings Expectations, Raises Financial Forecasts

Autodesk, a leading provider of computer-assisted design software, has reported better-than-expected earnings for its fiscal third quarter. This is seen as a positive indicator of activity in both the construction sector and the overall economy. The company’s management has also increased its financial forecasts for the January 2024 fiscal year.

In the late trading session on Tuesday, Autodesk’s shares rose by 3.8% to $225.90.

During the fiscal third quarter, which ended in October, Autodesk generated $1.41 billion in revenue, representing a 10% increase compared to the same period last year. Analysts had predicted revenue of $1.39 billion, according to FactSet. Adjusted profits came in at $2.07 per share, surpassing the consensus estimate of $1.99 per share. The generally accepted accounting principles (GAAP) earnings per share stood at $1.12.

Although billings were down 11% from the previous year at $1.2 billion, this decline was in line with market expectations. Autodesk’s decision to transition customers to annual renewals from three-year contracts billed up front contributed to this decrease.

Autodesk’s architecture, engineering, and construction segment experienced a notable growth of 17%, reaching $675 million in revenue, accounting for nearly half of the company’s overall revenue. This result indicates a positive trend in construction activity.

Looking ahead to its fiscal fourth quarter, Autodesk expects revenue in the range of $1.42 billion to $1.44 billion, aligning with the Street’s consensus estimate of $1.43 billion. The projected adjusted profit is anticipated to be between $1.91 and $1.97 per share, slightly below the consensus at $2.01 per share.

For the January 2024 fiscal year, Autodesk now forecasts a 9% increase in revenue to a range of $5.45 billion to $5.465 billion. This revision expands the previous forecast range of $5.405 billion to $5.455 billion. The company’s guidance for billings remains unchanged, targeting a range of $5.075 billion to $5.175 billion.

Regarding non-GAAP profit guidance for the full year, Autodesk has revised it to $7.43 to $7.49 per share, compared to the previous range of $7.30 to $7.49 per share. Additionally, the company has raised its free cash flow guidance to a range of $1.2 billion and $1.26 billion, up from the previous forecast of $1.17 billion to $1.25 billion.

This latest update from Autodesk signals strong performance and suggests a positive outlook for the company’s future growth.