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Autodesk (ADSK) To Report Earnings Tomorrow: Here Is What To Expect


Jabin Bastian /
2022/02/23 6:33 am EST
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Design software company Autodesk (NASDAQ:ADSK) will be announcing earnings results tomorrow afternoon. Here's what investors should know.

Last quarter Autodesk reported revenues of $1.12 billion, up 18.2% year on year, in line with analyst expectations. It was a weaker quarter for the company, with a decline in gross margin and underwhelming revenue guidance for the next quarter.

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 15% year on year to $1.19 billion, in line with the 15.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.44 per share.

Autodesk Total Revenue

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 1.48%.

Looking at Autodesk's peers in the vertical software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. Unity (NYSE:U) delivered top-line growth of 43.3% year on year, beating analyst estimates by 6.81% and Toast (NYSE:TOST) reported revenues up 111% year on year, exceeding estimates by 4.93%. Unity traded up 17.5% on the results, Toast was down 18.2%. Read our full analysis of Unity's results here and Toast's results here.

It seems that the volatility in the software stocks has somewhat calmed down for now, with stocks down on average 1.85% over the last month. Autodesk is down 6.74% during the same time, and is heading into the earnings with analyst price target of $344.7, compared to share price of $218.

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.