Autodesk (ADSK) Stock Falls Despite Earnings Beat, Guidance Increase

NEW YORK (TheStreet) -- Autodesk  (ADSK) fell Friday despite the software company's second-quarter earnings that beat analysts' expectations.

Autodesk reported adjusted earnings of 35 cents a share, down year-over-year from 45 cents a share, to beat the Thomson Reuters consensus estimate of 29 cents a share. Net revenue increased to $637.1 million from $561.7 million, which surpassed analysts' expectations of $603.39 million.

Total operating expenses rose to $499.3 million from $410.3 million.

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The company increased its guidance for the third quarter and now expects adjusted EPS of 17 cents to 23 cents on revenue of $590 million to $605 million.

The stock was down 3.84% to $54.12 at 11:08 a.m. More than 5.3 million shares changed hands, compared to the average volume of 1,912,620.

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 solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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