What To Expect From Autodesk’s (ADSK) Q2 Earnings

Kayode Omotosho /
2023/08/22 8:03 am EDT

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

Last quarter Autodesk reported revenues of $1.27 billion, up 8.46% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its gross margin.

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 6.75% year on year to $1.32 billion, slowing down from the 16.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.73 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 0.74%.

Looking at Autodesk's peers in the design software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Matterport delivered top-line growth of 38.9% year on year, beating analyst estimates by 0.76% and Procore Technologies reported revenues up 32.7% year on year, exceeding estimates by 4.84%. Matterport traded flat on the results, Procore Technologies was up 2.%.

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

Triggered by the Federal Reserve's hawkish stance on interest rates, shares of technology companies have been facing sell-off since 2022 and while some of the design software stocks have fared somewhat better, they have not been spared, with share price declining 6.39% over the last month. Autodesk is down 3.58% during the same time, and is heading into the earnings with analyst price target of $231.8, compared to share price of $203.0.

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