Autodesk, Inc. (NASDAQ: NASDAQ:ADSK)
Autodesk reported their earnings On Thursday May 18th just after the close of regular trading at 4 p.m. The company is a computer- aided- design- software firm whose competitors are IBM (NYSE:IBM), Adobe, Apple (NASDAQ:AAPL), and Trimble to name just a few. Those are some heavy hitters to compete against in a highly fragmented sector or engineering.
So How Good Were Autodesk Numbers
Well according to what the expectations from analysts were they were very good. In fact, just as recent as the beginning of May the company saw restatements or upgrades by the analysts that cover the equity.
On May 1st Morgan Stanley (NYSE:MS) upgraded the company from “equal-weight” to “overweight”. On May 9th Wedbush upgraded the company from “neutral” to “outperform” and lastly on May 17, just one day before earnings came out, RBC Capital Markets reiterated them as a “sector perform” rating.
Earnings came in at $0.16 a share and revenues of $486 million dollars. Compare this with a loss of $0.10 per share on sales of $512 million dollars a year ago and we can get an understanding on why shares rocketed up in the after hours trading session.
Analysts however expected the company to report a loss of 24 cents a share on sales of $470 million dollars. Shares of the company have traded in a 52-week range of $93.07 to $96.25. The shares closed up on the regular session at $95.83 which was up $1.86. However, in the aftermarket shares soared +10% closing at $105.49 or up $9.66.
Comments From The Company
Amar Hanspal, Autodesk co-CEO and chief product officer, said in a statement :
“Broad-based strength across all subscription types and geographies led to another record quarter for total subscription additions and a fantastic start of the new fiscal year,” Customers continue to embrace the subscription model, and we’re expanding our market opportunity with continued momentum of our cloud-based offerings, such as BIM 360 and Fusion 360.” Investors.com
ADSK Technicals
Autodesk 5m Chart
The above after- hours price chart shows 5 minute price candle intervals just after the earnings were released. As noted in the text above, Shares rocketed up from the $96 level hitting a high of $106.30.
Autodesk Daily Chart
In the above daily price chart from the beginning of 2017, the reader can see a clearly defined red resistance line which price has respected. Also of note is the green support line which, even after today’s close in price of it has respected. Tomorrow we will see shares open sharply higher as investors and traders will be watching this one closely. Keep an eye on volume and if prices can hold VWAP for a move higher.
Company Profile
Autodesk, Inc. is a design software and services company, offering customers productive business solutions through technology products and services. The Company’s segments include Architecture, Engineering and Construction (AEC), Platform Solutions and Emerging Business (PSEB), Manufacturing (MFG), and Media and Entertainment (M&E).
The Company serves customers in the architecture, engineering and construction; product design and manufacturing; and digital media and entertainment industries. The Company’s product development and manufacturing software provides manufacturers in automotive, transportation, industrial machinery, consumer products and building products with digital engineering solutions.
The Company’s product offerings include, AutoCAD, AutoCAD LT, Industry Collections, 3ds Max, Maya, Revit, Inventor, AutoCAD Civil three dimensional (3D), CAM Solutions, Fusion 360, BIM 360 and Shotgun.