Earnings To Watch: Autodesk (ADSK) Reports Q1 Results Tomorrow

Adam Hejl /
2022/05/25 8:03 am EDT
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Design software company Autodesk (NASDAQ:ADSK) will be reporting results tomorrow after the bell. Here's what to look for.

Last quarter Autodesk reported revenues of $1.21 billion, up 16.5% year on year, beating analyst revenue expectations by 1.31%. It was a weaker quarter for the company, with a full year 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 15.8% year on year to $1.14 billion, improving on the 11.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.34 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 1.53%.

Looking at Autodesk's peers in the vertical software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Unity delivered top-line growth of 36.3% year on year, missing analyst estimates by 0.31% and Q2 Holdings reported revenues up 15% year on year, exceeding estimates by 1.21%. Unity traded down 32.5% on the results, and Q2 Holdings traded flat on the results. Read our full analysis of Unity's results here and Q2 Holdings's results here.

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off in 2022, and software stocks have not been spared, with share price down on average 20.2% over the last month. Autodesk is down 2.84% during the same time, and is heading into the earnings with analyst price target of $263, compared to share price of $179.74.

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.