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Autodesk Results Top Estimates; Outlook Disappoints


Design software maker Autodesk, Inc. (ADSK) said Monday after the markets closed that its fourth quarter profit rose 3.5% from last year, helped by higher revenue and lower income tax expenses.

The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue.

However, the company forecast first quarter revenue and earnings below analysts' current consensus estimates.

"We are pleased with our stronger than expected fourth quarter results," said Carl Bass, Autodesk president and CEO. "While the global economic picture remains mixed, we ended the year strong, driven by increasing demand for our design and creation suites, record revenue in our AEC and manufacturing business segments, and strong large deal volume.

Autodesk shares currently losing 4.45% in after hours trading after closing the day's regular trading session at $36.62, down $1.29 or 3.40%. the shares trade in a 52-week range of $27.70 to $42.69.

Fourth quarter revenue from the Americas fell 2% to $221 million, while revenue from EMEA increased 2% to $238 million and revenue from Asia Pacific surged 11% to a record $148 million. Revenue from emerging economies dropped 11% from last year to $84 million and represented 14% of total revenue in the fourth quarter.

Revenue from the company's Platform Solutions and Emerging Business segment fell 7% from a year earlier, while revenue from its Architecture, Engineering and Construction business segment rose 18% from last year. Revenue from the company's Media and Entertainment business segment fell 16% from a year ago, while revenue from its manufacturing business segment grew 5% from a year last year.

For the fourth quarter ended January 31, 2013, the company reported net income of $74.5 million or $0.32 per share, compared to $72.0 million or $0.31 per share for the year-ago quarter.

Excluding items, adjusted net income for the fourth quarter rose to $120.8 million or $0.53 per share from $105.8 million or $0.46 per share in the prior year quarter.

On average, 18 analysts polled by Thomson Reuters expected the company to earn $0.49 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Operating margin for the quarter narrowed to 14% from 15% a year ago, while adjusted operating margin improved to 25% from 24% last year.

Revenue for the fourth quarter rose 2% to $606.9 million from $592.4 million in the same quarter last year. Sixteen analysts had a consensus revenue estimate of $586.16 million for the fourth quarter.

The latest quarter results include a one-time benefit of about $24 million in revenue related to a promotion that was run in advance of an increase in upgrade pricing.

The company's deferred revenue at the end of the fourth quarter was a record high of $835 million, an increase of 16% from a year earlier.

Looking forward to the first quarter, the company forecast revenue of $570 million to $590 million, earnings of $0.23 to $0.28 per share and adjusted earnings of $0.41 to $0.46 per share. Analysts currently expect the company to earn $0.51 per share on revenue of $590.61 million for the first quarter.

The company also said it expects fiscal 2014 net revenue to increase about 6% from the fiscal 2013 level, implying fiscal 2014 estimated net revenue of about $2.45 billion. Analysts currently expect the company to post revenue of $2.42 billion for the fiscal year 2014.

by RTTNews Staff Writer

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