Autodesk Faces Falling Expectations Into Earnings

Shares of Autodesk, Inc. ADSK fell on Tuesday ahead of the company’s first quarter financial results after the market close.

The company guided earnings of $0.28 per share (on revenue of $635 million), 12.5 percent below those reported in the same quarter last year, but 12 percent higher than those registered in the last two quarters.

Wall Street analysts expect earnings in line with guidance, on slightly lower revenue of $633.74 million. The crowd is a tad more bullish, and projects earnings of $0.30 per share on revenue of $635.08 million. Nonetheless, it should be noted from the chart above that Autodesk has a history of beating estimates and guidance.

A second chart shows the evolution of sentiment over time. While guidance remained the same since late-February, expert and the crowd consensus estimates have been falling consistently as earnings loom.

Autodesk 'Favorable' Heading Into Earnings

In a report published last week, analysts at UBS took a look at Autodesk, which they expect to come in in line with guidance.

Related Link: Autodesk 'Favorable' Heading Into Earnings, UBS Says

"Although recent macro-economic headwinds have led to inconsistent execution and slower growth, a positive dynamic has been the company's decision to accelerate its transition to a recurring revenue model, including expanded product rental options," the analysts explained.

The firm reiterated a Buy rating and a $74 price target.