Autodesk (ADSK) Q3 Earnings: What To Expect

Kayode Omotosho /
2022/11/21 4:08 am EST

Design software company Autodesk (NASDAQ:ADSK) will be announcing earnings results tomorrow after market close. Here's what you need to know.

Last quarter Autodesk reported revenues of $1.23 billion, up 16.6% year on year, in line with analyst expectations. It was a mixed quarter for the company, with optimistic revenue guidance for the next quarter but slow revenue growth.

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This quarter analysts are expecting Autodesk's revenue to grow 13.7% year on year to $1.28 billion, slowing down from the 18.2% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.70 per share.

Autodesk Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing three downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.5%.

Looking at Autodesk's peers in the vertical software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Matterport delivered top-line growth of 37.3% year on year, beating analyst estimates by 5.69% and Unity reported revenues up 12.7% year on year, missing analyst estimates by 0.85%. Matterport traded up 9.09% on the results, Unity was flat on the results. Read our full analysis of Matterport's results here and Unity's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks down on average 0.92% over the last month. Autodesk is up 1.58% during the same time, and is heading into the earnings with analyst price target of $249.90, compared to share price of $204.05.

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The author has no position in any of the stocks mentioned.