Autodesk Inventory Drops After Design Software Company Places In-Line Sales

Autodesk (ADSK), a maker of design and project workflow software, beat Wall Street’s fiscal second quarter profit target late Wednesday, but sales were only in line with views. ADSK shares collapsed during prolonged trading.


The San Rafael, California-based company earned an adjusted $1.21 per share on revenue of $1.06 billion for the quarter ended July 31. Analysts expected Autodesk earnings of $1.13 a share on revenue of $1.06 billion, according to FactSet. Year-over-year, Autodesk’s revenue grew 23% and revenue grew 16%.

With its second quarter results, Autodesk has put an end to a series of slowing earnings growth. During the first quarter, Autodesk posted eight consecutive quarters of declining year-over-year earnings growth.

For the fiscal third quarter ended October 31, Autodesk forecast earnings of $1.25 per share on revenue of $1.12 billion. That’s based on the midpoint of his outlook. Wall Street had forecast Autodesk earnings of $1.25 per share on revenue of $1.11 billion.

ADSK shares fall in late trades

In after-hours trading in the stock market today, ADSK’s share fell 7.1%, to nearly 318. During the regular session Wednesday, ADSK’s share rose 0.4% to 342.27.

“Strong growth in new product subscriptions, accelerating digital sales and improving subscription renewal rates were the drivers of our strong results in the second quarter,” Chief Financial Officer Debbie Clifford said in a statement. press release. “Our strong start to the year means we are increasing our revenues and margins for fiscal year 2022.”

For current fiscal 2022, Autodesk forecast adjusted earnings of $4.99 per share on revenue of $4.38 billion. That is based on the center of his guidance. Analysts had expected earnings of $4.87 per share on revenue of $4.36 billion.

Autodesk reaches two points of sale

On July 29, ADSK stock broke out of a 28-week consolidation period at a buy point of 321.23, according to IBD MarketSmith charts.

Autodesk stock released an additional buy point of 335.77 on Monday from a tight three-week pattern. But buying stock ahead of a company’s earnings report is risky.

ADSK stock hit an all-time high of 344.39 on Tuesday.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories about consumer technology, software, and semiconductor stocks.


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