Autodesk (ADSK) PT, Estimates Lowered at Wedbush Amid Weak Results, Outlook
Wedbush analyst Steve Koenig reiterated a Neutral rating and lowered estimates and his price target on Autodesk (NASDAQ: ADSK) to $51.00 (from $57.00) following Q2 miss and lowered guidance.
Koening commented, "ADSK reported 2Q16 revenue of $610M (-4% Y/Y and flat in constant currency), below our estimate of $614M and consensus of $612M. More disappointing was the guide down for 3Q and the full year; the latter was down by about $100M. Full-year EPS was guided lower by about $0.35 to $0.60-$0.72. More positively, the company kept its billings guidance intact and disclosed (for the first time) annual recurring revenue (ARR) growth of 23% Y/Y in constant-currency. Also, the company plans to move up its date for phasing out suite perpetual licenses; prior commentary had suggested a mid-CY16 date. The company will update its long-term model guidance at a Sept. 29th investor day. Although we expect updated guidance for operating margin and billings CAGR to be much more cautious than the prior guidance, the company's new plans to accelerate the pace of its transition should help somewhat."
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Shares of Autodesk closed at $50.00 yesterday.