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Autodesk Results Top Estimates


Design software maker Autodesk, Inc. (ADSK) said Thursday after the markets closed that its fourth quarter profit fell 79% from last year, as higher costs and expenses more than offset a 13% increase in revenue.

However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations as did its quarterly revenue. However, the company forecasts current quarter and fiscal year earnings below analysts' current consensus estimates.

"Our strong fourth quarter results capped off a terrific year for Autodesk," said Carl Bass, Autodesk president and CEO. "Strength in our core Architecture, Engineering and Construction (AEC) and Manufacturing business segments led to over-performance on nearly all metrics, including billings, revenue, deferred revenue, subscription additions, and cash flow."

Autodesk shares are currently gaining 3.26% in after hours trading after closing the day's regular trading session at $61.01, down $1.00 or 1.61%. The shares trade in a 52-week range of $44.76 to $63.00.

For the fourth quarter ended January 31, 2015, the San Rafael, California-based company reported net income of $11.5 million or $0.05 per share, compared to $53.7 million or $0.23 per share for the year-ago quarter.

Excluding items, adjusted net income for the fourth quarter was $58.8 million or $0.25 per share, compared to $93.2 million or $0.40 per share in the prior year quarter.

On average, 16 analysts polled by Thomson Reuters expected the company to earn $0.24 per share for the fourth quarter. Analysts' estimates typically exclude special items.

Operating margin for the quarter narrowed to 2% from 9% a year earlier, while adjusted operating margin shrank to 13% from 20% last year.

Revenue for the third quarter rose 13% to $664.6 million from $586.6 million in the same quarter last year. Fourteen analysts had a consensus revenue estimate of $650.51 million for the fourth quarter.

Revenue from Flagship products grew 4% from last year to $298 million, while revenue from Suites increased 15% to $249 million in the fourth quarter. Total billings for the quarter increased 13% year-over-year.

Total subscriptions increased by about 100,000 from the third quarter, including about 17,000 subscriptions related to the recent acquisition of Shotgun.

The company's deferred revenue at the end of the fourth quarter was a record $1.16 billion, an increase of 28% from a year earlier.

Looking forward to the first quarter, the company forecasts revenue of $625 million to $645 million, earnings of $0.01 to $0.06 per share and adjusted earnings of $0.25 to $0.30 per share. Analysts currently expect the company to earn $0.32 per share on revenue of $627.53 million for the first quarter.

For the full year fiscal 2016, the company forecasts revenue growth of 3% to 5%, earnings of $0.10 to $0.25 per share and adjusted earnings of $1.05 to $1.20 per share for the full year fiscal 2015. Analysts currently expects the company to earn $1.32 per share on revenue growth of 4% for the full year.

by RTTNews Staff Writer

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