The company reduced its non-GAAP earnings guidance to a range between 60 cents and 72 cents per share, from 95 cents to $1.10 per share.
Additionally, Autodesk reported better than expected earnings per share results for the second quarter of fiscal 2016 this afternoon. Revenue, however, missed estimates.
The company posted earnings of 19 cents per share for the quarter ended July 31, down from 35 cents per share for the same period last year.
Revenue decreased by 4% to $609.5 million for the quarter, compared with $637.1 million for the second quarter of fiscal 2015.
Analysts had estimated for earnings of 17 cents per share on revenue of $612.42 million for the latest quarter.
"Strong billings and deferred revenue growth led the quarter and we continue to see customers adopt our new model subscription offerings, which are showing strong year-over-year and sequential growth," CEO Carl Bass said in a statement.
Autodesk, a software and services company, is in the process of transitioning from perpetual licenses to subscriptions and flexible license agreements.
Separately, TheStreet Ratings team rates AUTODESK INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate AUTODESK INC (ADSK) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and a generally disappointing performance in the stock itself."
You can view the full analysis from the report here: ADSK Ratings Report