Jefferies Previews Autodesk (ADSK) Q2 Results; Macro Economic Issues Remain, No Need to Change Targets
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Price: $215.00 -1.34%
Rating Summary:
23 Buy, 14 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
23 Buy, 14 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Jefferies issued a second-quarter 2012 earnings preview for tech software giant Autodesk (Nasdaq: ADSK). The firm retains a Buy rating and $44 price target on the stock.
Though Jefferies says the stock is valued for negative EPS revisions, it doesn't expect the moves to be so dramatic as to adjust its price target or investment rating. Jefferies is confident we are not entering into another recession despite a glum macro economic outlook. The firm is looking for earnings of 41 cents per share for the quarter, in-line with the Street's 41 cents. Jefferies also expects in-line revs of $539 million. License revs should grow 16 percent to $326 million, which is down slightly from the previous expectation.
Jefferies points out some hints for a good quarter based on peer results, commenting, "Dassault Systemes reinforced our view on an in-line July Q for [Autodesk]. Dassault reported good 2Q11 results and Solidworks (competitor to [Autodesk's] Inventor) grew units +22% Y/Y and -2% sequentially. Mensch & Maschine, a large public European distributor reported [Autodesk] related revenue in line with normal seasonality."
On the macro outlook, "The domestic PMI index for July had the lowest reading since July 2009 but activity in the manufacturing sector still expanded for the 24th consecutive month, just at a lower pace...The domestic PMI index for July had the lowest reading since July 2009 but activity in the manufacturing sector still expanded for the 24th consecutive month, just at a lower pace."
Click here for more analyst color, or here for a ratings history on Autodesk.
Shares are 1.3 percent lower early Tuesday.
Though Jefferies says the stock is valued for negative EPS revisions, it doesn't expect the moves to be so dramatic as to adjust its price target or investment rating. Jefferies is confident we are not entering into another recession despite a glum macro economic outlook. The firm is looking for earnings of 41 cents per share for the quarter, in-line with the Street's 41 cents. Jefferies also expects in-line revs of $539 million. License revs should grow 16 percent to $326 million, which is down slightly from the previous expectation.
Jefferies points out some hints for a good quarter based on peer results, commenting, "Dassault Systemes reinforced our view on an in-line July Q for [Autodesk]. Dassault reported good 2Q11 results and Solidworks (competitor to [Autodesk's] Inventor) grew units +22% Y/Y and -2% sequentially. Mensch & Maschine, a large public European distributor reported [Autodesk] related revenue in line with normal seasonality."
On the macro outlook, "The domestic PMI index for July had the lowest reading since July 2009 but activity in the manufacturing sector still expanded for the 24th consecutive month, just at a lower pace...The domestic PMI index for July had the lowest reading since July 2009 but activity in the manufacturing sector still expanded for the 24th consecutive month, just at a lower pace."
Click here for more analyst color, or here for a ratings history on Autodesk.
Shares are 1.3 percent lower early Tuesday.
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