After the market close on Thursday, the San Rafael, CA-based software and services company reported better-than-expected fiscal 2016 fourth quarter results. Autodesk showed strong subscription growth during the quarter and long-term margins, Barclays said.
The company ended sales of perpetual licenses of individual products during the quarter. Instead, Autodesk will sell subscriptions and flexible license agreements, the company said
"Fiscal 17 will be an abnormal year with license going away, but it will also be the trough of the transition, after which we should see acceleration in subscribers and cash flow, so after a couple more quarters, there could be light at the end of this tunnel," Barcays said.
Autodesk stock is up by 1.38% to $50.10 in early-morning trading on Friday.
Separately, Autodesk has a "hold" rating and a letter grade of C- at TheStreet Ratings because of the company's strengths, such as largely solid financial position with reasonable debt levels by most measures and expanding profit margins, and its weaknesses, including deteriorating net income, disappointing return on equity and weak operating cash flow.
You can view the full analysis from the report here: ADSK
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.