Here is why Autodesk Inc. shares are trading higher on Wednesday
The company reported earnings of 59 cents per share, beating the analysts’ average estimate of 96 cents per share
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Staff or Guest writer for The Dog of Wall Street.
2020-11-25 11:56

Autodesk Inc. (NASDAQ: ADSK) shares hit a new 52-week high of $282.46 this morning after the San Rafael, California-based software company announced strong financial results for the third quarter amid higher demand for its cloud-based products and services following the pandemic.

Here is why Autodesk Inc. shares are trading higher on Wednesday

The company reported earnings of $132.2 million, or 59 cents per share for the quarter, as compared to $66.7 million, or 30 cents per share for the same period last year. On an adjusted basis, earnings rose to $1.04 per share, beating the analysts’ average estimate of 96 cents per share.

Revenue came in at $952.4 million, significantly higher than $842.7 million in the year-ago quarter. Analysts surveyed by FactSet were expecting Autodesk to post revenue of $943.3 million.

Speaking on the results, CEO Andrew Anagnost said in a statement “our enterprise customers are undertaking their own digital transformation and, by enabling that transformation, we are becoming strategic partners. For example, we signed a nine-digit deal in the quarter. We are confident in our fiscal 2023 targets and expect to see continued double-digit growth thereafter."

Autodesk said its operating costs in the quarter rose 7.4 percent to $700.7 million.

If we look at the sales performance of key segments, design revenue rose 13 percent to $848 million, make revenue jumped 32 percent to $77 million, while subscription plan revenue increased 24 percent to $884 million. On the other hand, maintenance plan revenue fell 56 percent to $40 million. The aforesaid results were reported on a constant currency basis.

Autodesk shares have performed well in the recent months. The stock has climbed nearly 48 percent on a year-to-date basis, and about +40 percent over the past 6 months. At the current trading price, the company’s market value stands at $60.378 billion.


Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

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2020-11-25 11:56

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