3D design software company Autodesk (NASDAQ: ADSK) will be reporting results this Thursday afternoon. Here’s what investors should know.
Autodesk beat analysts’ revenue expectations last quarter, reporting revenues of $1.93 billion, up 18.4% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ annual recurring revenue estimates and a solid beat of analysts’ billings estimates.
Is Autodesk a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Autodesk’s revenue to grow 14.2% year on year, slowing from the 17.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Autodesk has a history of exceeding Wall Street’s expectations.
Looking at Autodesk’s peers in the design software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Unity delivered year-on-year revenue growth of 23.9%, beating analysts’ expectations by 6.1%, and Cadence Design Systems reported revenues up 24.2%, topping estimates by 0.5%. Unity traded up 21.2% following the results while Cadence Design Systems was also up 1.8%.
Read our full analysis of Unity’s results here and Cadence Design Systems’s results here.
There has been positive sentiment among investors in the design software segment, with share prices up 14.3% on average over the last month. Autodesk is up 10.1% during the same time and is heading into earnings with an average analyst price target of $314.57 (compared to the current share price of $248.77).
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