This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Autodesk Can't Seem to Design a Growth Plan

Moving Forward

For Autodesk, the good news is that the company continues to do well in the Americas, as evidenced by the 4% increase in revenue, which arrived at $209 million. However, this was offset by poor performances overseas in areas such as Asia-Pacific.

The company continues to struggle in emerging markets, which represent 15% of total revenue. Autodesk has seen sales eroded by 9% to just $80 million. Unfortunately, management does not appear confident that things are going to get any better.

In discussing the company's struggles to overcome macro concerns, management became extremely conservative with guidance. The company is now expecting fourth-quarter revenue in a range of $570 million to $600 million, with EPS between 43 cents to 51 cents. That's less than consensus estimates for revenue of $604 million and EPS of 54 cents.

Bottom Line

As disappointing as the company's results have been, Autodesk is far from a disaster. The company has strong fundamentals and an excellent management team that understands the company's business. The problem is that the stock is priced too high for a company with lethargic revenue growth. So even though shares are down 30% from their 52-week high, I would stay away until the company can prove that it can put its sales growth in gear.

At the time of publication, the author held no position in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Richard Saintvilus is a private investor with an information technology and engineering background and has been investing and trading for over 15 years. He employs conservative strategies in assessing equities and appraising value while minimizing downside risk. His decisions are based in part on management, growth prospects, return on equity and price-to-earnings as well as macroeconomic factors. He is an investor who seeks opportunities whether on the long or short side and believes in changing positions as information changes.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ADSK $42.66 -2.40%
FB $100.05 -0.94%
GOOG $674.35 -1.40%
TSLA $157.02 9.30%
YHOO $26.64 -1.70%


Chart of I:DJI
DOW 15,632.24 -282.50 -1.78%
S&P 500 1,825.47 -26.39 -1.43%
NASDAQ 4,237.9050 -45.6870 -1.07%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs