Why Autodesk Shares Are Tumbling Today

Autodesk Inc ADSK shares are trading lower Wednesday after the company reported third-quarter financial results and issued guidance below analyst estimates

What Happened: Autodesk said third-quarter revenue increased 14% year-over-year to $1.28 billion, which is in line with average analyst estimates, according to Benzinga Pro. Billings jumped 16% year-over-year to $1.36 billion. 

The software company reported quarterly earnings of $1.70 per share, up from $1.34 per share year-over-year.

Autodesk expects fourth-quarter revenue to be between $1.303 billion and $1.318 billion versus average estimates of $1.33 billion. The company sees fourth-quarter adjusted earnings in a range of $1.77 to $1.83 per share versus estimates of $1.83 per share. Autodesk also lowered its billings and free cash flow guidance.

"Our lower billings and free cash flow guidance primarily reflect less demand for multi-year, up-front and more demand for annual contracts than we expected," said Debbie Clifford, CFO of Autodesk.

Analyst Assessment: Several analysts lowered price targets on the stock following the company's quarterly results.

  • Keybanc analyst Jason Celino maintained Autodesk with an Overweight and lowered the price target from $264 to $237.
  • Oppenheimer analyst Ken Wong maintained Autodesk with an Outperform and lowered the price target from $255 to $220.
  • Barclays analyst Saket Kalia maintained Autodesk with an Overweight and lowered the price target from $275 to $225.
  • Credit Suisse analyst Phil Winslow maintained Autodesk with an Outperform and lowered the price target from $355 to $325.
  • Rosenblatt analyst Blair Abernethy maintained Autodesk with a Buy and lowered the price target from $270 to $235.
  • Mizuho analyst Matthew Broome downgraded Autodesk from Buy to Neutral and lowered the price target from $260 to $210.

Related Link: Tesla To $176? Here Are 5 Other Price Target Changes For Wednesday

ADSK Price Action: Autodesk has a 52-week high of $284.96 and a 52-week low of $163.20.

The stock was down 8.57% at $190.99 Wednesday morning.

Photo: David Schwarzenberg from Pixabay.

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