Autodesk (ADSK) to Report Q2 Earnings: What's in the Offing?

Autodesk ADSK is scheduled to report second-quarter fiscal 2023 results on Aug 24.

The company anticipates revenues between $1.220 billion and $1.235 billion for the fiscal second quarter. The Zacks Consensus Estimate for the same is pegged at $1.22 billion, suggesting growth of 15.3% from the year-ago quarter.

Autodesk projects non-GAAP earnings to be $1.54-$1.60 per share. The Zacks Consensus Estimate for the same stands at $1.56 per share, indicating a 28.9% year-over-year rise.

Autodesk’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7%.

Autodesk, Inc. Price and EPS Surprise

Autodesk, Inc. price-eps-surprise | Autodesk, Inc. Quote

Factors to Note

The accelerated digital transformation, taking place across all industries, is driving demand for Autodesk’s cloud solutions. The company’s fiscal second-quarter performance is likely to have benefited from solid growth in subscription revenues amid accelerated cloud migration.

A solid uptick in the maintenance-to-subscription program, continued momentum in the new customer billings and steady renewals are expected to have acted as tailwinds. The robust adoption of the AutoCAD and AutoCAD LT product family is expected to have favored ADSK’s top line.

The company is likely to have gained from the robust performance of the Enterprise Business Agreements program. This is anticipated to have boosted Autodesk’s remaining performance obligation growth rates in the quarter to be reported.

The Autodesk Construction Cloud solution has been witnessing steady traction with owners, general contractors and subcontractors across the construction industry, which is anticipated to have favored the top line. In September 2021, the company announced that more than 350,000 worldwide projects are leveraging Autodesk Construction Cloud to create highly-competent preconstruction workflows.

Gains from Autodesk Build, a field management solution launched in February 2021, and part of Autodesk Construction Cloud may have contributed to the to-be-reported quarter's top line.

Incremental gains from the uptake of BuildingConnected, a construction management offering that centralizes and streamlines the bidding process as well as comprises the Autodesk Construction Cloud builders’ network, are likely to get reflected in the second-quarter top line.

Synergies from the buyout of Innovyze, a leader in water infrastructure software, augur well. The buyout is likely to have strengthened Autodesk’s position in the end-to-end water infrastructure solutions space.

However, headwinds from supply-chain disruptions and eventual inflationary pressures, pandemic dynamics, labor shortage and country-specific challenges like that of Architecture, Engineering and Construction product margins in China might have impacted Autodesk’s second-quarter performance.

What Our Model Unveils

Our proven model does not conclusively predict an earnings beat for Autodesk this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Autodesk has an Earnings ESP of -1.07% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With Favorable Combinations

Per our model, Chewy CHWY, Oracle ORCL and FactSet Research Systems FDS have the right combination of elements to post an earnings beat in their upcoming releases.

Chewy has a Zacks Rank #1 and an Earnings ESP of +1.03%. The company is scheduled to report second-quarter fiscal 2023 results on Aug 30. Its earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average surprise being 4.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for the second-quarter loss of Chewy is pegged at 12 cents per share, suggesting a year-over-year decline of 0.04%. The consensus mark for revenues stands at $2.50 billion, indicating growth of 16% year over year.

Oracle is expected to report first-quarter fiscal 2023 results on Sep 12. The stock has a Zacks Rank #2 and an Earnings ESP of +1.41%. Its earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, missing once, the average surprise being 5.8%.

The Zacks Consensus Estimate for Oracle’s quarterly earnings stands at $1.07 per share, suggesting year-over-year growth of 3.9%. Its quarterly revenues are estimated to decrease 17.9% year over year to $11.47 billion.

FactSet Research Systems has a Zacks Rank #2 and an Earnings ESP of +2.77%. The company is likely to report fourth-quarter fiscal 2022 results on Sep 27. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 10.9%.

The Zacks Consensus Estimate for FDS's fourth-quarter earnings is pegged at $3.20 per share, suggesting year-over-year growth of 11.11%. The consensus mark for revenues stands at $492.1 million, indicating a year-over-year improvement of 19.5%.

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