Autodesk
‘s earnings, known as an indicator of activity both in construction and in the overall economy, came in better than expected, while management increased its financial forecasts for the January 2024 fiscal year.
In late trading Tuesday, shares in the provider of software for computer-assisted design were 3.8% higher at $225.90.
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]
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