Autodesk’s Earnings Come in Strong in Upbeat Sign for Construction

For its fiscal third quarter, ended in October, Autodesk (ticker: ADSK) reported revenue of $1.41 billion, up 10% from the year-earlier period. The consensus call among analysts tracked by
FactSet
was for $1.39 billion.

Adjusted profits came in at $2.07 a share, ahead of the consensus call of $1.99. Under generally accepted accounting principles, Autodesk earned $1.12 a share.

Billings were $1.2 billion, down 11% from a year ago but in line with Street expectations. The decline reflects the company’s decision to shift customers to annual renewals from three-year contracts billed up front.

Autodesk said revenue in its architecture, engineering, and construction segment rose 17% to $675 million, accounting for a little under half of overall revenue. That strong result is a positive sign about construction activity.

For its fiscal fourth quarter, the company sees revenue of $1.42 billion to $1.44 billion, bracketing the Street consensus call of $1.43 billion. Adjusted profit is expected to be $1.91 to $1.97 a share, a little below the consensus at $2.01 a share.

For the January 2024 fiscal year, Autodesk now sees revenue up 9%, to between $5.45 billion and $5.465 billion, boosting the range from a previous forecast of $5.405 billion to $5.455 billion. Its guidance for billings was unchanged, with the company targeting a range of $5.075 billion to $5.175 billion.

Revised full year non-GAAP profit guidance calls for $7.43 to $7.49 a share, which compares with a previous range of $7.30 to $7.49 a share. The company also lifted its free-cash-flow guidance for the year to between $1.2 billion and $1.26 billion, from a previous forecast of $1.17 billion to $1.25 billion.

Write to Eric J. Savitz at [email protected]