Advertisement
UK markets close in 1 hour 15 minutes

  • FTSE 100

    7,865.36
    +17.37 (+0.22%)
     

  • FTSE 250

    19,370.92
    +30.78 (+0.16%)
     

  • AIM

    743.70
    +0.58 (+0.08%)
     

  • GBP/EUR

    1.1686
    +0.0019 (+0.17%)
     

  • GBP/USD

    1.2456
    -0.0001 (-0.00%)
     

  • Bitcoin GBP

    50,753.03
    +962.90 (+1.93%)
     

  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     

  • S&P 500

    5,033.85
    +11.64 (+0.23%)
     

  • DOW

    37,983.47
    +230.16 (+0.61%)
     

  • CRUDE OIL

    82.69
    0.00 (0.00%)
     

  • GOLD FUTURES

    2,393.30
    +4.90 (+0.21%)
     

  • NIKKEI 225

    38,079.70
    +117.90 (+0.31%)
     

  • HANG SENG

    16,385.87
    +134.03 (+0.82%)
     

  • DAX

    17,778.76
    +8.74 (+0.05%)
     

  • CAC 40

    8,004.23
    +22.72 (+0.28%)
     
Money:

Best mortgage deals of the week

As possibility of multiple interest rate cuts dwindle here's what banks and building societies are offering

Autodesk to Report (ADSK) Q4 Earnings: What's in the Cards?

Zacks Equity Research
Updated

Autodesk Inc. ADSK is set to report fiscal fourth-quarter 2018 results on Mar 6.

Last quarter, the company reported non-GAAP loss of 12 cents per share, narrower than the Zacks Consensus Estimate of a loss of 13 cents. The figure was within the guided range of a loss of 12-16 cents per share.

Notably, the company has a positive earnings surprise track. It has beaten estimates in each of the trailing four quarters, delivering an average positive surprise of 19.2%.

Revenues of $515.3 million beat the consensus mark of $514.1 million and increased nearly 5.3% year over year. The figure was marginally ahead of the guided range of $505-$515 million.

Let's see how things are shaping up for this announcement.

Key Factors

Autodesk’s business transition from licenses to cloud-based services is expected to boost subscriptions and deferred revenues.

We note that Autodesk’s broad product portfolio generates new customers in both domestic and overseas markets. Double-digit growth in all three major geographies is instrumental in driving the total annualized recurring revenue (ARR) of the company.

For the fourth quarter, the Zacks Consensus Estimate for ARR is $2.02 billion, up 26.5% from the reported number in the year-ago quarter.

Strong adoption of products is driving subscription revenues for the company. Cloud subscriptions are driven by robust performance of BIM 360 and Fusion tools.

The company’s focus to fast integrate new technology into Fusion 360, advancement of BIM 360 platform and the growth of its Forge platform are positives.  Also, renewal opportunities for cloud are high in the quarter.

Autodesk is also gaining from the Enterprise Business Agreement (EBA) program. The company anticipates strong EBA sales in the soon-to-be reported quarter.

However, the company continues to expect decline in maintenance plan subscriptions. Additionally, slowdown in cloud subscription is a headwind.

Although the company plans to keep spending unchanged over the next year, it remains concerned about increasing foreign exchange headwinds, which might weigh heavily on its expenses. Moreover, its restructuring plan will remain an overhang on margins.

Autodesk, Inc. Price and EPS Surprise

Autodesk, Inc. Price and EPS Surprise | Autodesk, Inc. Quote

ADVERTISEMENT

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or #5) are best avoided. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Autodesk has a Zacks Rank #3 and its Earnings ESP is +9.50%. Therefore, the company is likely to deliver a positive surprise this quarter.

Other Stocks With a Favorable Combination

Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter.

Tech Data Corporation TECD has an Earnings ESP of +0.28% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Red Hat Inc. RHT has an Earnings ESP of +2.02% and a Zacks Rank #3.

Broadcom Limited AVGO has an Earnings ESP of +1.08% and a Zacks Rank #3.

Don’t Even Think About Buying Bitcoin Until You Read This

The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.

Zacks’ has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 4 crypto-related stocks now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Red Hat, Inc. (RHT) : Free Stock Analysis Report
 
Autodesk, Inc. (ADSK) : Free Stock Analysis Report
 
Broadcom Limited (AVGO) : Free Stock Analysis Report
 
Tech Data Corporation (TECD) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research