NEW YORK (TheStreet) -- Shares of Autodesk (ADSK) - Get Report were advancing in after-hours trading Thursday as the San Rafael, CA-based software and services company posted higher-than-expected 2017 second-quarter results after today's market close.
Autodesk reported earnings of 5 cents per share, well above the loss of 13 cents per share predicted by analysts. Revenue came in at $551 million, surpassing Wall Street's projected $512.07 million in revenues.
During the same quarter last year, Autodesk posted earnings of 19 cents per share and $609.5 million in revenue.
Autodesk CEO Carl Bass said the company's 2017 second-quarter results were driven by a surge in subscriptions. In the second quarter, subscriptions increased by 109,000 to 2.82 million. New model subscriptions grew by 125,000 to 692,000.
The company now projects a third-quarter loss between 22 cents per share and 27 cents per share, compared to analysts' projected loss of 29 cents per share.
For 2017, Autodesk forecasts revenues in the range of $2 billion to $2.05 billion, up from its prior estimate of $1.95 billion to $2.05 billion. Wall Street is looking for revenues of $1.99 billion.
Separately, 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. TheStreet Ratings has this to say about the recommendation:
We rate AUTODESK INC as a Hold with a ratings score of C-. 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 good cash flow from operations, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk.
You can view the full analysis from the report here: