Autodesk (ADSK) to Report Q3 Earnings: What's in the Cards?
Autodesk ADSK is slated to report third-quarter fiscal 2023 results on Nov 22.
The company anticipates revenues between $1.275 billion and $1.290 billion for the fiscal third quarter. The Zacks Consensus Estimate for the same is pegged at $1.28 billion, suggesting growth of 13.8% from the year-ago quarter.
Autodesk projects non-GAAP earnings of $1.66-$1.72 per share. The Zacks Consensus Estimate for the same stands at $1.70 per share, indicating a 27.8% year-over-year rise.
Autodesk’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.2%.
Autodesk, Inc. Price and EPS Surprise
Autodesk, Inc. price-eps-surprise | Autodesk, Inc. Quote
Factors Ahead Q3 Earnings
The accelerated digital transformation, taking place across all industries, is driving demand for Autodesk’s cloud solutions. The company’s fiscal third-quarter performance is likely to have benefited from solid growth in subscription revenues amid accelerated cloud migration.
A solid uptick in the maintenance-to-subscription program, continued momentum in new customer billings and steady renewals are expected to have acted as tailwinds. The robust adoption of the AutoCAD and AutoCAD LT product family is expected to have favored ADSK’s top line.
The company is likely to have gained from the robust performance of the Enterprise Business Agreements program. This is anticipated to have boosted Autodesk’s remaining performance obligation growth rates in the quarter to be reported.
Gains from Autodesk Build, a field management solution launched in early 2021, and part of Autodesk Construction Cloud may have contributed to the to-be-reported quarter's top line.
The Autodesk Construction Cloud solution has been witnessing steady traction with owners, general contractors and subcontractors across the construction industry, which is anticipated to have favored the top line. In 2021, the company announced that more than 350,000 worldwide projects are leveraging Autodesk Construction Cloud to create highly-competent preconstruction workflows.
Incremental gains from the uptake of BuildingConnected, a construction management offering that centralizes and streamlines the bidding process as well as comprises the Autodesk Construction Cloud builders’ network, are likely to get reflected in the third quarter top line.
Last year’s buyout of Innovyze, a leader in water infrastructure software, is likely to have strengthened Autodesk’s position in the end-to-end water infrastructure solutions space.
However, headwinds from labor shortages, persistent inflationary pressures, and pandemic dynamics might have impacted Autodesk’s third-quarter performance.
What Our Model States
Our proven model does not conclusively predict an earnings beat for Autodesk this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.
Autodesk has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combinations
Per our model, Dollar General DG, lululemon athletica LULU and Okta OKTA are some stocks that investors can consider, as these have the right combination of elements to post an earnings beat in their upcoming releases.
Dollar General has an Earnings ESP of +1.58% and currently carries a Zacks Rank #2. The company is slated to report its fourth-quarter fiscal 2023 results on Dec 1. DG’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 2.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Dollar General’s fiscal fourth-quarter earnings stands at $2.55 per share, implying a year-over-year increase of 22.6%. DG is estimated to report revenues of $9.43 billion, which suggests a surge of 10.7% from the year-ago quarter.
lululemon athletica has an Earnings ESP of +4.91% and a Zacks Rank #2. The company is anticipated to report its third-quarter fiscal 2023 results on Dec 8. lululemon’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.4%.
The Zacks Consensus Estimate for LULU’s fiscal third-quarter earnings is pegged at $1.95 per share, indicating a 20.4% surge from the year-ago quarter’s $1.62 per share. The consensus mark for revenues stands at $1.80 billion, suggesting a year-over-year increase of 24.4%.
Okta has an Earnings ESP of +0.71% and carries a Zacks Rank #2 at present. The company is set to report its third-quarter fiscal 2023 results on Nov 30. OKTA’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 45.5%.
The Zacks Consensus Estimate for quarterly loss is pegged at 24 cents per share, suggesting a year-over-year decrease of 242.9%. OKTA’s quarterly revenues are estimated to increase 32.2% year over year to $463.6 million.
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Dollar General Corporation (DG) : Free Stock Analysis Report
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