Autodesk Inc. (NASDAQ: ADSK) has confirmed that it will release its earnings on Tuesday, November 23, 2021, after market close.
What to look for
Earnings: Stockearning’s Estimated EPS for Q3 2021 is $1.25 per share, representing a YoY increase of 20.2%. In the second quarter, the company reported EPS of $1.21, which topped analysts' average estimates of $1.13 per share. Historical EPS Performance shows that the company has topped estimates seven times (58%) and missed four times (33) with a total meet once (8%).
Revenue: The company is expected to report revenue of $1.12 billion for the current quarter under review representing a 17.5% YoY increase. In the second quarter, the company reported a 16% increase in revenue to $1.06 billion compared to a year before. Billings were up 29% to $1.015 billion, demonstrating cash collections recovery that were disrupted by the pandemic a year ago. The company expects a free cash flow of between $1.5 billion and $1.575 billion for the full year.
Stock Movement: Since the last earnings release, Autodesk stock has lost 3.4%. Autodesk stock has been DOWN 24 times out of the past 47 quarters following the earnings release. So, the historical price reaction suggests a 51% probability of the share price going DOWN after Autodesk releases its earnings. According to the Stockearning algorithm, the predicted first-day move is 6%, while the predicted move on the seventh day is 6%.
What analysts are saying
Baird analyst Joe Vrywink maintained a “Buy” rating on Autodesk shares but raised his price target from $370 to $380. The analyst stated that because of growth acceleration during the quarter, fiscal Q4 2022 seems to be favorable, with additional acceleration/improvement anticipated in FY2023.
Stifel analyst Adam Borg also raised the stock's price target from $340 to $365 and maintained a "buy" rating in Autodesk shares. The revision comes after an upbeat discussion with three North American platinum level channel partners that demonstrated performing ahead of Q3 prediction and have raised Q4 guidance. Equally, the partners positively spoke about the Autodesk Construction Cloud in terms of messaging, channel improvements, and product. Borg believes that the company has various secular and firm-specific drivers that can sustain double-digit revenue growth.
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