Shares of Autodesk have seen a rise in premarket trading following a positive fiscal second-quarter earnings report. Analysts from William Blair praised the company’s tools and diversified end-market exposure, which they believe will continue to support digitization momentum for several years. They have given the stock an Outperform rating.
In the second quarter, Autodesk (ADSK) exceeded revenue and adjusted earnings estimates. The company reported $1.345 billion in revenue, surpassing the expected $1.324 billion, and adjusted earnings of $1.91 per share, higher than the projected $1.76. Autodesk also revised its fiscal year 2024 outlook.
As a result, Autodesk’s shares jumped 6.9% to $218.50 in premarket trading.
KeyBanc Capital Markets analysts also expressed optimism about Autodesk’s results and growth opportunities in the long term. They maintained an Overweight rating on the stock and increased their price target to $255 from $244 in a recent note.
While Mizuho analysts were slightly more cautious, they still raised their revenue and earnings estimates for Autodesk. Despite maintaining a Neutral rating and a $220 price target, they praised the company’s consistent performance in a challenging operating environment. However, they believe the stock is fairly valued due to anticipated tougher business conditions in fiscal 2024.
Andrew Anagnost, CEO of Autodesk, highlighted the company’s commitment to augmented design and its potential to create a better world. The use of enterprise-level AI, powered by Autodesk, enables customers to push boundaries in design and production.
Investors have taken note of the strong earnings performance from Autodesk as well as the dominating presence of Nvidia (NVDA) in the artificial intelligence chip market.
