Design software company Autodesk (NASDAQ:ADSK) will be announcing earnings results tomorrow after the bell. Here's what you need to know.
Last quarter Autodesk reported revenues of $1.32 billion, up 8.84% year on year, in line with analyst expectations. It was a weak quarter for the company, with full year revenue guidance missing analysts' expectations.
Is Autodesk buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Autodesk's revenue to grow 8.3% year on year to $1.27 billion, slowing down from the 18.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.56 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.03%.
Looking at Autodesk's peers in the design software segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Cadence delivered top-line growth of 13.3% year on year, beating analyst estimates by 1.51% and Unity reported revenues up 56.3% year on year, exceeding estimates by 4.28%. Cadence traded down 1.9% on the results, Unity was up 16.4%. Read our full analysis of Cadence's results here and Unity's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 9.28% over the last month. Autodesk is up 3.82% during the same time, and is heading into the earnings with analyst price target of $230.6, compared to share price of $197.47.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
The author has no position in any of the stocks mentioned.