Autodesk (ADSK) Stock Slumps in After-Hours Trading on Q2 Outlook
NEW YORK (TheStreet) -- Autodesk (ADSK) - Get Report stock is retreating 0.56% to $57.20 in after-hours trading on Thursday after issuing disappointing guidance for the 2016 second quarter.
After the market close, the design software and services company said it expects a current-quarter loss between 18 cents and 11 cents per share on revenue between $500 million and $520 million. Analysts are looking for a loss of 7 cents per share on $542.11 million in revenue.
The downbeat forecast is overshadowing better-than-expected first quarter results.
Autodesk reported an adjusted loss of 10 cents per share vs. analysts' estimates for a loss of 14 cents per share for the most recent period. Revenue declined 12% year-over-year to $512 million, but beat analysts' expectations for $510.5 million.
CEO Carl Bass attributed the results to the company's transition to a subscription-based business model and cloud-based software.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.
Autodesk's strengths such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins are countered by 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 article's author.
