Bullish Forecast Boosts Autodesk

Shares rise 6%.
By Ivy Lessner ,

SAN FRANCISCO -- Autodesk (ADSK) - Get Report shares rose Thursday after the company raised guidance.

The company said revenue for the first fiscal 2009 quarter, which ends next week, will range from $590 million to $595 million, up from a previous range of $575 million to $585 million. EPS, excluding special items, will be 47 cents or 48 cents. Analysts were expecting revenue of $578.1 million and earnings 47 cents a share.

Shares in the maker of computer-aided design and computer-aided engineering software were up $2.15, or 6%, to $37.70 in recent trading.

Second-quarter revenue will range from $600 million to $610 million, vs. previous guidance for $590 million. EPS, less items, will range from 52 to 54 cents. Analysts were looking for revenue of $589 million and EPS of 50 cents.

Full-year revenue will grow year over year between 13% and 15% to a range of $2.45 billion and $2.5 billion. Autodesk had previously projected revenue of $2.43 billion to $2.48 billion. EPS, excluding items, was raised by 5 cents to a range of $2.20 to $2.30. Analysts were expecting a top line of $2.44 billion and EPS of $2.16.

During the quarter, the company is spending $8 million not previously forecast on a reorganization aimed at reducing future costs, CEO Carl Bass said in a statement. The company will report earnings in June.

Some software companies are showing strength amid a troubled macroeconomic first quarter.

Parametric Technology

(PMTC)

, which also sells CAD software,

reported 13% revenue growth Wednesday

and said full-year EPS estimates would come up strong.

Amdocs

(DOX) - Get Report

, which supplies software to telecoms, also

raised guidance April 17

when it reported earnings for its most recent quarter.

And virtualization software developer

VMware

(VMW) - Get Report

posted a strong quarter, with nearly 70% top-line growth year over year.

Goldman Sachs analyst Sasa Zorovic wrote in a note Thursday that he expects no improvement in Autodesk's domestic U.S. business for the current year, although he finds the new guidance "conservative, particularly after yesterday's commentary from Parametric," which said that the rate at which its North American business was declining has slowed to the lowest point in four quarters, according to Zorovic. Autodesk is an investment banking client of the firm.

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