Autodesk (ADSK) Q4 Earnings: What To Expect

Jabin Bastian /
2023/02/22 4:24 am EST

Design software company Autodesk (NASDAQ:ADSK) will be reporting results tomorrow afternoon. Here's what investors should know.

Last quarter Autodesk reported revenues of $1.28 billion, up 13.7% year on year, inline with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.

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This quarter analysts are expecting Autodesk's revenue to grow 8.42% year on year to $1.31 billion, slowing down from the 16.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.81 per share.

Autodesk Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing three upward and two downward revisions over the last thirty days.. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.36%.

Looking at Autodesk's peers in the vertical software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Q2 Holdings delivered top-line growth of 11.1% year on year, missing analyst estimates by 1.87% and Toast reported revenues up 49.4% year on year, exceeding estimates by 2.11%. Toast was down 6.2%, and Q2 Holdings was down 1.64%. Read our full analysis of Q2 Holdings's results here and Toast's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 5.79% over the last month. Autodesk is up 4.42% during the same time, and is heading into the earnings with analyst price target of $236.3, compared to share price of $215.55.

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