Yahoo Finance Autodesk (ADSK) Announces Preliminary Q1 Fiscal 2025 Results
Autodesk ADSK recently announced the preliminary results for the first quarter of fiscal 2025. Revenues are projected to be $1.42 billion, indicating year-over-year growth of 11.9%. The Zacks Consensus Estimate is pegged at $1.39 billion.
The company expects adjusted earnings to be $1.87 per share, indicating year-over-year growth of 20.6%. The Zacks Consensus Estimate is pegged at $1.75 per share.
Autodesk also announced the result of the Audit Committee's investigation. As initially disclosed on Apr 1, 2024, the Audit Committee began an internal review concerning the company's practices related to free cash flow and non-GAAP operating margin.
The Audit Committee's investigation, covering fiscal 2022, 2023 and 2024, revealed that Autodesk relied on multi-year contracts with upfront billing to meet free cash flow targets, incentivizing customers to accept such terms and renew early.
Although this practice was disclosed, its impact on free cash flow was not quantified until fiscal 2024. The Audit Committee recommended enhancing financial communication processes, reviewing organizational functions and adopting new policies and processes.
Following the completion of the investigation, management has concluded that no restatement or modification of any audited or unaudited, filed or previously reported, as well as GAAP or non-GAAP financial statements will be necessary.
Autodesk, Inc. Price and Consensus
Autodesk, Inc. price-consensus-chart | Autodesk, Inc. Quote
ADSK’s Q2 and Fiscal 2025 Guidance Gives Bright Prospects
Autodesk also provided guidance for the fiscal second quarter and full-year 2025. The guidance is based on the strong preliminary result in the first quarter of fiscal 2025.
For second-quarter fiscal 2025, ADSK expects revenues between $1.475 billion and $1.49 billion. Non-GAAP earnings are estimated in the band of $1.98-$2.04 per share.
For fiscal 2025, ADSK expects revenues between $5.81 billion and $5.96 billion. Non-GAAP earnings are expected in the band of $7.99-$8.21 per share. Operating margin is expected to grow in the band of 9-11% year over year. Free Cash flow is expected in the range of $1.43- $1.5 billion.
The Zacks Consensus Estimate for ADSK’s fiscal 2025 revenues is pegged at $6.04 billion, indicating 9.88% year-over-year growth. The consensus mark for earnings is pegged at $8.01 per share, indicating 5.39% year-over-year growth.
Autodesk recently announced that it has been chosen by ProjectReady for Construction Cloud and Nemetschek Group to improve open collaboration and efficiencies for the architecture, engineering, construction and operations, and media and entertainment (M&E) industries.
ProjectReady has expanded its solution to enhance security and governance management within Autodesk Construction Cloud, which provides real-time project insights. This integration not only saves time but also boosts confidence in securing technology. Autodesk also announced an interoperability agreement with the Nemetschek Group to enhance open collaboration and efficiencies in various industries. This agreement will improve the integration between their cloud and desktop products, enabling seamless data exchange and optimized workflows.
ADSK recently acquired Wonder Dynamics, the creators of Wonder Studio, a cloud-based 3D animation and VFX solution that integrates AI with established tools. Wonder Studio's compatibility with popular 3D tools like Autodesk Maya allows artists to easily animate and compose 3D characters within live-action scenes, streamlining the traditionally complex and time-consuming processes.
This acquisition supports Autodesk's strategic goal of enhancing creativity by connecting teams, data and processes through Flow, its M&E industry cloud on the Design and Make platform. Financial terms of the deal were not disclosed. These recent advancements are expected to drive the company’s growth in the upcoming quarters.
However, shares of this Zacks Rank #3 (Hold) company have plunged 17.2% year to date against the Zacks Computer and Technology sector’s 15.2% growth due to tough competition from players like Dassault Systemes DASTY, ANSYS ANSS and PTC PTC in the CAD market. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Autodesk AutoCAD has the highest market share of 31%, followed by Dassault SolidWorks with 12%, Dassault Systemes with 10%, and ANSYS and PTC with less than 5%, according to a report by PSH. Autodesk also has other software called Revit, Inventor and AutoCAD Civil 3D in the same market.
ADSK leverages AI across various industries to enhance efficiency and creativity. Autodesk aims to capitalize on its position as a market leader in the CAD market by investing in the generative AI market to enhance its customer base for generative AI-powered products and services.
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