Publish date:

Autodesk Stock Drops on Forecast: What Wall Street Is Saying

Autodesk falls after the 3D architecture imaging company reported second-quarter results and reduced its outlook for free cash flow.
Author:

Shares of Autodesk were lower on Thursday after the 3D architecture imaging company reported second-quarter results and reduced its outlook for free cash flow.

Autodesk shares at last check were down 7.8% to $315.75. Here's what Wall Street analysts were saying about the company's print:

Morgan Stanley reiterated its equal weight rating and $334 price target, saying "the quarter likely fell short of buy-side expectations and may mute confidence in executing against a second-half ramp." 

The investment firm nonetheless sees signs of continued positive demand momentum, according to Bloomberg. 

Oppenheimer reiterated an outperform rating and $350 price target. The San Rafael, Calif., company's results show "strong cash collections, bookings growth outpacing subscriptions revenue growth, and increasingly confident commentary on improving usage and market demand," the firm said.

TheStreet Recommends

Technical Blueprints of Homebuilder Toll Brothers Bullish: Real Money

To be sure, these factors were offset by "lower annual [free-cash-flow] guidance from a change in invoicing and only modest improvement to the [fiscal-year] revenue goal."

RBC Capital Markets also affirmed an outperform rating, and a $363 price target. The results show "momentum in new-product subscriptions, solid retention and renewals with product usage back to pre-COVID levels."

Autodesk reported second-quarter earnings of $1.21 a share on revenue of $1.06 billion. Analysts surveyed by Bloomberg were expecting the company to report earnings of $1.13 a share on revenue of $1.06 billion. 

For the third quarter, the company expects earnings between $1.22 and $1.28 a share on revenue of $1.11 billion to $1.13 billion. Analysts are expecting earnings of $1.30 a share on revenue of $1.12 billion. 

For the year, the company sees revenue between $4.35 billion and $4.39 billion vs analyst estimates of $4.36 billion.