From Nasdaq: 2024-11-21 11:50:00

Autodesk’s shares (ADSK) have risen 26.4% YTD, slightly underperforming the Computer and Technology sector. However, ADSK outperformed the Computer – Software industry and peers like INTU, ANSS, and VRNT. The company’s success is attributed to strong Design and Make business, with Design revenues up 9% and Make revenues up 25% YOY.

Autodesk received FedRAMP Authorization for its government offerings, including Autodesk Docs and Autodesk BIM Collaborate Pro. The company aims to drive digital transformation in the public sector by leveraging cloud collaboration capabilities. Autodesk BIM Collaborate Pro allows users to access real-time design updates, enhancing efficiency.

ADSK’s short-term earnings estimates show steady growth, with a consensus estimate of $2.11 per share for Q3 fiscal 2025 and $8.24 per share for fiscal 2025. The company has consistently beaten earnings estimates, with an average surprise of 5.94%. Revenue estimates for Q3 fiscal 2025 and fiscal 2025 show double-digit growth.

For fiscal 2025, Autodesk expects revenues between $6.08 billion and $6.13 billion, with non-GAAP EPS between $8.18 and $8.31. The company anticipates Q3 fiscal 2025 revenues between $1.555 billion and $1.57 billion, with non-GAAP EPS between $2.08 and $2.14. However, ADSK’s stretched valuation, with a Value Score of F and trading at a higher P/E ratio than the sector, raises concerns for investors.

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Read more at Nasdaq: Autodesk Stock Price Increases 27% YTD: How Should You Play It?