Thursday pre-market gains for Autodesk (NASDAQ:ADSK) were around 9% after the software company revealed better-than-anticipated second quarter results and increased its full-year projection for adjusted profitability.
As opposed to the previous range of $6.43 to $6.66, adjusted EPS is now anticipated to be in the $6.52 to $6.71 (consensus -$6.59) range. Instead of the previously stated range of $4.96B to $5.06B, the business has now narrowed its fiscal 2023 revenue estimate range to be between $4.99 billion and $5.04 billion (consensus – $5.01 billion). It is still anticipating a 36% non-GAAP operating margin and free cash flow between $2 and $2.08 billion.
Debbie Clifford, the CFO of Autodesk, stated “Our outlook is maintained at the midpoint across all indicators as the underlying business strength offsets incremental foreign exchange headwinds. We’re still on schedule to meet our objectives for fiscal year 23.”
The company reported adj. EPS of $1.65 for the second quarter on $1.24 billion in revenue that increased 17% year over year. Both metrics increased as a result of robust billings growth: current RPO increased 10% to $3.14 billion and remaining performance obligations increased 13% to $4.69 billion.
The full year’s total billings are expected to be between $5.71 billion and $5.81 billion, up 17% to $1.19 billion during the quarter. Adjusted operating margin increased by 5 points to 36%.
The S&P 500 Index SPX, +0.27% rose 0.29% to 4,140.77, and the Dow Jones Industrial Average DJIA, -0.14% rose 0.18% to 32,969.23, making it a mostly positive trading session for the stock market. A three-day losing streak for the stock was broken by its gain. Autodesk Inc. fell short of its 52-week high ($343.56), which it reached on August 25th, by $129.13.
On Wednesday, the stock outperformed some of its rivals, including Apple Inc. (NASDAQ: AAPL), +1.16%, which increased 0.18% to $167.53, Adobe Inc. (NASDAQ:ADBE), -2.30%, which decreased 1.16% to $405.65, and Synopsys Inc. (NASDAQ:SNPS), +0.57%, which decreased 0.07% to $358.75. Trading volume (1.7 M) exceeded its volume of 1.5 M for the previous 50 days.
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