NEW YORK (TheStreet) -- Autodesk (ADSK) - Get Autodesk, Inc. Report stock is increasing by 0.26% to $49.26 on heavy trading volume, before the company is scheduled to announce its earnings results for the second quarter of fiscal 2016 after the market close today.
Analysts are anticipating a year-over-year decrease in earnings per share and revenue.
Autodesk is expected to post earnings of 17 cents per share on revenue of $612.42 million for the quarter.
Last year, the company reported non-GAAP earnings of 35 cents per diluted share on revenue of $637.1 million for the second quarter of fiscal 2015.
San Rafael, Calif.-based Autodesk provides software and services company for various industries, including architecture, construction, manufacturing, digital media, consumer and entertainment.
So far today, 4.56 million shares of Autodesk have exchanged hands, compared with its average daily volume of 2.33 million shares.
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."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 11.9%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The current debt-to-equity ratio, 0.34, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ADSK has a quick ratio of 1.69, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for AUTODESK INC is currently very high, coming in at 90.27%. Regardless of ADSK's high profit margin, it has managed to decrease from the same period last year.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Software industry and the overall market on the basis of return on equity, AUTODESK INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- Net operating cash flow has significantly decreased to $86.50 million or 60.44% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: ADSK Ratings Report