Autodesk Stock Shows Resilience Despite Mixed Earnings Report
Based in San Francisco, California, Autodesk, Inc. (ADSK) specializes in 3D design, engineering, and entertainment technology solutions. With a market capitalization of $66.2 billion, Autodesk operates globally across the Americas, Europe, the Middle East, Africa, and Asia Pacific.
As a “large-cap stock,” Autodesk is categorized among companies valued at $10 billion or more. This valuation underscores its significant presence and influence within the software application industry. Autodesk’s clientele spans diverse fields such as architecture, construction, product design, and entertainment.
Recently, Autodesk stock peaked at $326.62 on November 25 and currently trades 5.5% lower than that high. The stock has increased by 20.7% over the past three months, outperforming the S&P 500 Index’s ($SPX) 10.6% gains during the same period.
In the longer term, Autodesk has consistently outperformed the S&P 500. While ADSK’s 26.7% year-to-date gains slightly trail SPX’s 26.9%, the stock has surged 37.7% over the past year, surpassing SPX’s 31.5% increase in the same timeframe.
To further demonstrate its upward momentum, ADSK has primarily traded above its 50-day and 200-day moving averages since mid-June, with only minor fluctuations.
Despite reporting annual financials that exceeded expectations, Autodesk’s stock fell by 8.6% on November 26 after the release of its Q3 results. The dip was largely attributed to guidance that disappointed investors. Furthermore, the company reported a 19.6% increase in marketing and sales expenses, totaling $525 million, leading to some contraction in the operating margin.
Nonetheless, Autodesk’s overall performance remained strong. The company saw its total net revenues increase by 11% year-over-year, reaching approximately $1.6 billion, bolstered by high renewal rates and strong subscription demand. Following the initial decline, ADSK stock recovered in the subsequent trading sessions, maintaining its upward trajectory.
In comparison, Autodesk has outshone its competitor ANSYS, Inc. (ANSS), which recorded a 5.6% decline on a year-to-date basis, though it has gained 19.3% over the past year.
Analysts are generally optimistic about Autodesk, with a consensus rating of “Moderate Buy” among the 25 analysts covering the stock. The average price target stands at $327.96, indicating a potential upside of 6.3% from current levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
