Autodesk Plummets on Heavy Volume

NEW YORK (TheStreet) -- Investors are scrambling to cover their positions in Autodesk(ADSK Quote) shares, sending them down 10.9% to $24.05 a share in early afternoon trading.

The company reported better than expected third-quarter results yesterday, but its guidance for the next six months has spooked investors. By early afternoon, 13.3 million Autodesk shares had changed hands, roughly triple the stock's three-month average volume.

The design and engineering software maker cautioned yesterday that it sees a fall in profit margins for the months ending in April, signaling higher operating expenses ahead, says a Jefferies & Co analyst. Those six months have traditionally been a weak seasonal period for Autodesk, he added.

Greg Dunham, a Deutsche Bank analyst, has cut his profit forecast for 2011 from $1.30 to $1.20 per share. Wall Street analyst estimates are averaging at $1.16 per share for the year ending January 2011.