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Autodesk posts revenue beat; stock maintains $290 price target at Rosenblatt

Published 2024-06-12, 08:12 a/m
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On Wednesday, Rosenblatt Securities sustained its positive stance on Autodesk (NASDAQ:ADSK) shares, reiterating a Buy rating and a $290.00 price target. The software company's first quarter results for the fiscal year 2024, released after market close on Tuesday, surpassed revenue forecasts slightly, with reported revenue reaching $1,417 million. This figure represents a 12% year-over-year increase or 13% on a constant currency basis.

The company's Q1 operating margins stood at 35%, while non-GAAP earnings per share (EPS) were reported at $1.88, exceeding the anticipated $1.63 and the consensus estimate of $1.74. These results come in the wake of Autodesk's recent transition to direct billing for its U.S. customers and a steady sales environment throughout the quarter.

Despite the changes, Autodesk has reaffirmed its previous revenue growth guidance for fiscal year 2025, projecting an increase of 9-11%. This guidance was initially provided on May 31st, following the closure of an audit committee investigation that concluded without the need for any financial restatements or adjustments.

Following the Q1 performance, Rosenblatt Securities has made slight upward revisions to its revenue estimates for Autodesk for fiscal years 2025 and 2026. The firm's analysts have chosen to maintain the $290 price target and Buy rating for Autodesk's stock, which is traded on NASDAQ under the ticker ADSK.

In other recent news, Autodesk, Inc. has reported a positive start to fiscal 2025, with a 12% increase in first-quarter revenue to $1.42 billion and adjusted earnings per share (EPS) of $1.87, both surpassing analyst expectations. Despite a 5% decrease in total billings to $1.11 billion, the remaining performance obligations grew by 12% year-over-year, indicating a strong future revenue pipeline

Looking ahead, Autodesk's outlook for the second quarter of fiscal 2025 forecasts revenue between $1.475 billion and $1.490 billion, with adjusted EPS expected to be between $1.98 and $2.04. For the full fiscal year 2025, the company anticipates revenue growth of 9% to 11%, with an expected range of $5.99 billion to $6.09 billion.

In addition to financial performance, Autodesk has announced Project Bernini, an AI model designed to generate 3D shapes from various inputs, marking a significant advancement in the design space.

In terms of analyst ratings, RBC (TSX:RY) Capital and BofA Securities have maintained their Outperform and Neutral ratings respectively, while Deutsche Bank (ETR:DBKGn) and Goldman Sachs (NYSE:GS) have revised their price targets for Autodesk's stock.

These recent developments reflect the company's strategic initiatives and financial health, providing investors with a clearer picture of Autodesk's current status and prospects.

InvestingPro Insights

Autodesk's recent financial performance, as discussed in the article, is complemented by several key metrics and InvestingPro Tips that can provide investors with a broader perspective. With a robust gross profit margin of 91.73% over the last twelve months as of Q1 2025, Autodesk demonstrates its strong ability to retain revenue after the cost of goods sold is accounted for. This impressive margin is a testament to the company's efficient operations and pricing power.

However, investors should note that Autodesk is trading at a high earnings multiple, with a P/E ratio of 45.58 and an even slightly higher adjusted P/E ratio for the same period. Additionally, the company's stock generally trades with low price volatility, suggesting a stable investment for those concerned with short-term swings.

For those interested in a deeper analysis, InvestingPro offers additional insights, including the fact that Autodesk operates with a moderate level of debt and that analysts predict the company will be profitable this year. In total, there are 14 additional InvestingPro Tips available for Autodesk, which can be accessed for further strategic investment considerations. To explore these insights and more, investors can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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