Key Takeaways:
- Autodesk’s shares surged in after-hours trading on Thursday after the company exceeded analysts’ quarterly earnings estimates and provided strong sales guidance.
- The company reported strength from both enterprise and entry-level customers during the fourth quarter.
- Analysts warn that Autodesk shares could face resistance between $320 and $335 due to a previous triple top chart pattern.
Shares in Autodesk (ADSK) surged over 8% during extended-hours trading on Thursday following the release of better-than-expected quarterly results and an optimistic sales outlook driven by strong demand from enterprise and entry-level customers.
In the fiscal 2024 fourth quarter, Autodesk reported adjusted earnings of $2.09 per share, surpassing analysts’ expectations of $1.95 per share. Revenue for the period reached $1.47 billion, marking an 11% increase from the previous year and exceeding forecasts of $1.43 billion. Despite a 19% decline in billings compared to the same quarter last year, attributed to a shift in billing practices, the company witnessed growth in design revenue by 10%, make revenue by 16%, and subscription plan sales by 10% year-over-year.
Autodesk noted resilience in demand from enterprise and entry-level customers, though it observed softness in the middle market and a mixed performance across regions, with strength in the U.S. business offsetting weakness in Asia-Pacific.
Looking forward, Autodesk anticipates full-year fiscal 2025 sales to range between $5.99 billion and $6.09 billion, surpassing Wall Street’s expectations. Additionally, the company’s billings projection for the period at $5.885 billion exceeds analysts’ estimates. For the fiscal first quarter ending April 30, revenue is expected to range from $1.385 billion to $1.4 billion, slightly below analysts’ forecasts.
Autodesk’s president and CEO, Andrew Anagnost, highlighted the company’s focus on integrating generative artificial intelligence (AI) into its suite of applications and products, aiming to automate tasks and generate complex designs more efficiently.
After crossing above the 200-day moving average in December, Autodesk shares have continued to climb, trading above an 18-month consolidation period. Investors should monitor a potential resistance area between $320 and $335, indicated by a prior triple top pattern, in the event of a post-earnings rally.
Following the earnings release, Autodesk shares rose by 8.5% to $279.99 in after-hours trading.
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