Autodesk, Inc. (ADSK) Stock Heads Higher on Q2 Earnings Beat


Autodesk's cloud transition is gaining steam and its stock has hit a record high

(NASDAQ:ADSK) traded 0.84% higher at $67.22.

Autodesk, Inc. (NASDAQ:ADSK) was up on Friday after the company released its earnings report for the second quarter of fiscal 2017.

Total subscriptions increased 109,000 from the first quarter of fiscal 2017 to 2.82 million at the end of the second quarter. New model subscriptions (desktop, enterprise flexible license, and cloud subscription) increased approximately 125K from the last quarter to 692K.

Total annualized recurring revenue (ARR) was $1.47 billion, an increase of 10 percent compared to the second quarter a year ago as reported, and 14 percent on a constant currency basis.

Cash flow from operating activities for the six-month period ended Jul 31, 2016 was $146.4 million compared with $163.7million in the comparable period a year ago. Total recurring revenue in the second quarter was 67 percent of total revenue compared to 55 percent of total revenue in the second quarter past year.

Revenue reported by Autodesk in the second quarter of fiscal 2017 was $550.7 million.

As a reminder, during the business model transition, revenue has been and will be negatively impacted as more revenue is recognized ratably rather than up front and as new product offerings generally have a lower initial purchase price. On average, analysts forecast that Autodesk will post ($0.82) EPS for the current fiscal year. Autodesk also recorded a restructuring related charge of $16 million in the quarter.

Total non-GAAP spend was $525 million, a decrease of 4 percent compared to the second quarter a year ago.

GAAP diluted net loss per share was $(0.44). Non-GAAP loss (excluding stock-based compensation expense and amortization of acquisition-related intangibles) is expected in the range of 55 cents- 70 cents per share, better than the earlier projection of 70 cents – 95 cents per share.

Non-GAAP diluted net income per share was $0.05, compared to non-GAAP diluted net income per share of $0.19 in the second quarter previous year. The firm said it was happy to see a third of subscription growth coming from new customers. The firm’s market capitalization is $15.10 billion. IFP Advisors Inc now owns 1,715 shares of the software company’s stock worth $100,000 after buying an additional 230 shares in the last quarter. Autodesk also noted that its recurring revenue was up 10% from the prior-year period, at $1.47 billion on an annualized basis. The company’s revenue for the quarter was down 10% from the $609.5 million it reported in the second quarter of fiscal 2016.

Deferred revenue increased 23 percent to $1.52 billion, compared to $1.24 billion in the second quarter past year. Revenue in APAC was $100 million, a decrease of 32 percent compared to the second quarter a year ago as reported, and 30 percent on a constant currency basis.

The number of Autodesk, Inc. shares in issue is 224,656,000 which have a current share price of 66.32 bringing Autodesk, Inc.’s market capitalisation to 14.90B United States dollars. About 2.11 million shares traded hands or 46.53% up from the average. Current stock price is in the upbeat territory taking into account of 20 days moving average with 4.33% and continued bullish run for 50 days moving average with 9.52%. The brokerage now has an “outperform” rating on the software company’s stock. Autodesk, Inc. (NASDAQ:ADSK) marked 52 week highest price level of $65.78 on 12/04/15 and 52 week lowest price level of $41.60 on 02/09/16.

Out of 16 analysts covering Autodesk Inc. The stock is up 0.74% or $0.47 hitting $63.64, despite the negative news. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. Its weekly and monthly volatility is 1.46%, 1.93% respectively. Lateef Investment Management L.P., a California-based fund reported 2.47 million shares. Autodesk makes up approx 0.05% of Tokio Marine Asset Management Co Ltd’s portfolio.Farmers Merchants Investments Inc reduced its stake in ADSK by selling 125 shares or 71.43% in the most recent quarter. They presently have a $54.00 target price on the software company’s stock. Its return on investment ratio was -9.90%.

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