Autodesk (ADSK) Q3 Earnings: What To Expect

Kayode Omotosho /
2023/11/20 2:01 am EST

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

Last quarter Autodesk reported revenues of $1.35 billion, up 8.7% year on year, beating analyst revenue expectations by 1.9%. It was a decent quarter for the company, with an improvement in its gross margin. EPS also beat and next quarter's revenue guidance slightly topped estimates.

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 8.4% year on year to $1.39 billion, slowing down from the 13.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.99 per share.

Autodesk Total Revenue

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 0.9%.

Looking at Autodesk's peers in the design software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Cadence delivered top-line growth of 13.4% year on year, beating analyst estimates by 1.8% and Procore Technologies reported revenues up 33% year on year, exceeding estimates by 6.1%. Cadence traded flat on the results, Procore Technologies was down 6.1%.

Read our full analysis of Cadence's results here and Procore Technologies's results here.

There has been positive sentiment among investors in the design software segment, with the stocks up on average 8.1% over the last month. Autodesk is up 9.1% during the same time, and is heading into the earnings with analyst price target of $236.1, compared to share price of $217.84.

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