Autodesk (ADSK) Crushed on Q2 Miss, Cut Outlook, and Drastic Restructuring

August 23, 2012 5:17 PM EDT
Autodesk, Inc. (Nasdaq: ADSK) is getting slammed in late trading Thursday amid weak second-quarter results and news it will be restructuring the company.

Sales in the quarter rose 4.1 percent to $568.7 million, from $546.3 million in the same period last year. Net income slipped 9.3 percent to $64.6 million, or 28 cents per share. After adjusting for certain one-time items and EPS was a more robust 48 cents.

Unfortunately, the numbers were not robust enough for the peanut gallery. Street consensus views saw sales of $593.1 million and EPS of 49 cents.

Notably, EMEA revs fell 1 percent in the quarter, while Americas sales rose just 4 percent.

Investors are focused solely on guidance and the restructuring news. Autodesk said the move reflects the continued shift to cloud and mobile computing. The Company stated it: "anticipates taking a pre-tax charge in the range of $50 million to $60 million in connection with the restructuring. Approximately $40 million to $45 million of the pre-tax charges will be taken in the third quarter of fiscal 2013. Most of the remaining charge will be taken in the fourth quarter of fiscal 2013."

Autodesk will also be reducing non-sales related travel and the number of its contractors.

On its outlook, Autodesk guided for third-quarter 2013 sales of $550 million to $570 million and earnings of 40 cents to 45 cents per share. The Street was modeling sales of $601.2 million and EPS of 50 cents.

For fiscal 2013, revenue growth is expected at 4 percent to 6 percent compared to fiscal 2012, with non-GAAP operating margin increasing by approximately 150 basis points. Last quarter, Autodesk saw sales growing 10 percent for the year and a 200 basis point increase in non-GAAP operating margins.

Shares are getting clobbered, down well over 20 percent in the late session.

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