Back to top

Analyst Blog

Autodesk, Inc (ADSK - Analyst Report) is set to report fourth quarter 2013 results on Feb 26. Last quarter, it posted a 14.8% positive surprise. Let’s see how things are shaping up for this announcement.

Growth Factors This Past Quarter

Autodesk’s third-quarter result reflected improving demand environment in the AEC market. The company has significant growth opportunities in the AEC and manufacturing markets going forward.

Autodesk believes that the momentum from the BIM product portfolio will help it to penetrate the construction industry faster, which is a $7.0 trillion market. We believe that Autodesk’s new cloud-based offerings are gaining traction.

Moreover, the company’s focus on expanding its mobile applications for both Apple’s iOS and Google’s Android platform will further drive market share, going forward.

However, a sluggish macro-economic environment, weakness in emerging markets, customer concentration and increasing competition from Adobe Systems Inc. are the major concerns. Moreover, continued investments in new products are expected to hurt margins in the near term.

Earnings Whispers?

Our proven model does not conclusively show that Autodesk is likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 21 cents. Hence, the difference is of 0.0%.

Zacks Rank: Autodesk’s Zacks Rank #3 (Hold) when combined with an ESP of 0.00% makes surprise prediction difficult. We caution against stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Other Stocks to Consider

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter: 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SYNAPTICS I… SYNA 78.11 +8.14%
GREEN PLAIN… GPRE 39.41 +5.12%
PILGRIM'S P… PPC 28.82 +3.08%
SKYWORKS SO… SWKS 52.07 +2.58%
CLAYTON WIL… CWEI 109.08 +2.51%