Categories Analysis, Technology

Autodesk to report Q3 results on November 21. Here’s what to expect

Market watchers predict a year-over-year increase in third-quarter earnings and revenues

Design software company Autodesk, Inc. (NASDAQ: ADSK) will be reporting third-quarter 2024 results on November 21 after regular trading hours. The company has been working to ramp up its enterprise-level AI capabilities, and it looks well-positioned to benefit from the widespread adoption of AI-supported solutions.  

For Autodesk’s stock, it has been a rollercoaster ride so far this year — it has gained 15% after experiencing fluctuations during that period. ADSK is trading above its 52-week average, but well below the record highs seen two years ago. From an investment perspective, the current valuation looks favorable as the stock is poised to gain strength in the coming months. However, it might disappoint short-term investors.

AI Power

Being an early mover in generative AI tools, Autodesk can benefit from long-term pricing power as more and more architects and engineers rely on its tools. The many productivity tools available in Autodesk Construction Cloud, including AutoCAD, Revit, and Fusion 360, are widely used across the globe.

The third-quarter report is expected to be released on November 21, at 4 p.m. ET. Encouraged by the strong Q2 results, the Autodesk leadership recently forecast an increase in third-quarter adjusted earnings per share to the range of $1.97 to $2.03 from $1.70 per share last year. The company sees October-quarter revenues between $1.38 billion and $1.40 billion. Analysts’ consensus estimates for the quarter are broadly in line with the management’s guidance.

“We still anticipate fiscal ’24 will be the cash flow trough during our transition from upfront to annual billings for multiyear contracts. Putting that all together, we now expect fiscal ’24 revenue to be between 5.41 billion and 5.46 billion. We expect non-GAAP operating margins to be similar to fiscal ’23 levels, with constant currency margin improvement offset by FX headwinds. We expect free cash flow to be between 1.17 billion and 1.25 billion. We’re increasing the guidance range for non-GAAP earnings per share to be between $7.30 and $7.49,” Autodesk’s CFO Debbie Clifford said in a recent interaction with analysts.

Results Beat

In the second quarter of 2024, net income moved up to $222 million or $1.03 per share from $186 million or $0.85 per share in the corresponding period of 2023. Adjusted earnings increased 16% year-over-year to $1.91 per share. The bottom-line growth was driven by a 9% increase in revenues to $1.35 billion. Both numbers topped expectations. The last time the company’s quarterly earnings missed estimates was about four years ago.

The stock began the week on a high note, registering one of the biggest single-day gains. It traded slightly higher during Friday’s session.

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