Autodesk, Inc. Is Manufacturing And Constructing Its Way To The Top

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Autodesk, Inc. Is Manufacturing And Constructing Its Way To The Top

By Carly Forster

Autodesk, Inc. (NASDAQ:ADSK) is a San Rafael, California based American multinational software company that manufactures software for the architecture, engineering, construction, manufacturing, media, and entertainment industries. The corporation released its second quarter results on Thursday, August 14th and its results gave reason for investors to be optimistic.

During its Q2 results, Autodesk reported Non-GAAP $0.35 earnings per share, beating analysts’ consensus estimate of $0.20 by $0.06. During the same quarter last year, the company posted $0.45 earnings per share. Autodesk had revenue of $637.10 million for the quarter, compared to analysts’ consensus estimate of $603.16 million. The company’s quarterly revenue was down 22% on a year-over-year basis. On average, analysts predict Autodesk will post $1.18 earnings per share for the current fiscal year.

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A reason for Autodesk’s successful quarter is likely due to the company’s two main verticals, construction and manufacturing, gaining interest from an escalating supportive atmosphere. CEO Carl Bass said in a statement, “The company saw strong demand on a global basis [and] made meaningful progress in the transition to a more recurring, subscription-based business, adding approximately 74,000 maintenance, desktop (rental), and cloud subscriptions.”

Shares of Autodesk opened at $58.44 on Friday, August 15th. The software company has a 1-year high of $58.58 and a 1-year low of $35.05. The stock’s daily moving average is $55.21 and has a 50-day moving average of $55.47. The market cap for Autodesk is $11.97 billion and its P/E ratio is 59.91.

On August 15th, UBS analyst Brent Thill reiterated a BUY rating for Autodesk, Inc. (NASDAQ:ADSK) and raised his price target from $60 to $65. Thill has a +12.3% average return on all stocks and a 68% success rate in making recommendations. He also has a +11.2% average return on Autodesk and is ranked #148 out of 3242 analysts.

Separately on August 15th, Merril Lynch analyst Kash Rangan reiterated a Neutral rating for the software company and raised his price target from $53 to $62. He noted, “ADSK beat revenue and EPS estimates ($637mn vs. our/cons est. of $603/$604mn, and $0.35 vs. our/cons est. $0.27/$0.29) with license upside. Deferred revenue was stronger than expected and total subs ended the quarter at 2mn.” Rangan has a -0.2% average return on all stocks and has a 50% success rate in making recommendations. He also has a -29.1% average return on Autodesk and is ranked #2495 out of 3242 analysts.

Although both financial experts agree that Autodesk should be in their portfolio, one believes having more shares will lead to more profit, while the other believes letting the stock sit is the right way to go. Who do you trust?

To see more recommendations for Autodesk, Inc. (NASDAQ:ADSK), visit TipRanks today!

Carly Forster writes about stock market news. She can be reached at Carly@tipranks.com

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