Autodesk Reports Mixed Earnings, Stock Faces Pressure

In a tough market, Autodesk shares have struggled despite better-than-expected quarterly results. The recent earnings report revealed EPS of $2.17 but concerns about future guidance led to an 8.6% drop in stock price, raising investor worries.

Date: 20-02-2025

AI Rating: 5

Market Performance and Earnings
Autodesk, Inc. (ADSK) has seen its stock underperform in comparison to the broader S&P 500 Index over the past year, gaining only 15.8% versus the S&P's 22.8%. This lagging performance could reflect investors' concerns and market sentiment surrounding the company's potential growth.

Despite reporting better-than-expected Q3 2025 adjusted EPS of $2.17 and revenue of $1.6 billion, Autodesk's share price tumbled 8.6% in response. This negative reaction may be attributed to the company's Q4 EPS guidance of $2.10 - $2.16, which just barely met consensus expectations, raising eyebrows about future growth.

EPS and Future Guidance
Analysts are predicting Autodesk's EPS to grow 32.7% year-over-year to $5.76 for the fiscal year ending in January 2025. The company's history of earnings surprises has been promising, having exceeded consensus estimates in the last four quarters. However, recent concerns, particularly surrounding the new CFO and execution risks, have left investors on edge.

Consensus Rating and Analyst Predictions
Among the 26 analysts covering Autodesk's stock, the overall consensus rating is a “Strong Buy,” indicating some confidence in the stock's potential despite its recent struggles. BofA's price target for Autodesk is set at $335, while the average target is around $336.58, suggesting that the stock is trading at levels below what analysts expect it could potentially reach.

Investors looking at Autodesk should carefully consider the mixed signals from its earnings report, guidance, and overall market performance. The upside potential indicated in analysts’ price targets could offer an attractive opportunity if the execution risks are managed effectively.

Stocks: ADSK