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Autodesk (ADSK) Touches 52-Week High on Positive Outlook

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Share price of Autodesk Inc. (ADSK - Free Report) rallied to a new 52-week high of $114.02, eventually closing a tad bit lower at $113.36 on May 22. This represents a massive one-year return of approximately 94%, better than the S&P 500 market's gain of 15.4% over the same period.

Currently, Autodesk has a Zacks Rank #3 (Hold). Notably, the stock has a market cap of $24.9 billion.

Key Factors

Autodesk’s first-quarter 2017 revenues of $485.7 million beat the Zacks Consensus Estimate of $473 million. The figure was higher than the management’s guided range of $460–$480 million. Subscription revenues soared 102.8% year over year to $173.4 million.

Excluding stock-based compensation, the company reported a loss of 16 cents, much narrower than management’s guided range of a loss of 27–21 cents per share.



The company’s revenues continue to benefit from its business model transition. As Autodesk shifts from licenses to cloud and subscriptions, upfront costs are expected to reduce along with piracy practices via the usage of cloud-based verification.

We also note that marketing and promotional initiatives taken up by the company have accelerated its subscription base and revenues have improved visibly.

Moreover, we expect its broad product portfolio to attract new customers in both domestic and overseas markets.

Estimate Revisions

The Zacks Consensus Estimate for fiscal 2018 has widened from a loss of $1.38 to that of $1.76 over the last 30 days. However, for fiscal 2019, estimates have narrowed to a loss of 20 cents from 22 cents.

Autodesk, Inc. Revenue (TTM)

 

Autodesk, Inc. Revenue (TTM) | Autodesk, Inc. Quote

Stocks to Consider

Better-ranked stocks in the broader computer-software market include ACI Worldwide, Inc. (ACIW - Free Report) , Aspen Technology, Inc. (AZPN - Free Report) and Avid Technology, Inc. . All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

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