Autodesk Stock Jumps on Strong Q4 Results, Sales Guidance—Key Level to Watch

Key Takeaways

• Autodesk shares jumped in extended-hours trading on Thursday after the company exceeded analysts’ quarterly earnings estimates and issued better-than-expected sales guidance.
• The company said it saw strength from enterprise and entry-level customers during the fourth quarter.
• Autodesk shares may run into resistance between $320 and $335 from a prior triple top chart pattern.

Shares in Autodesk (ADSK) jumped more than 8% in extended-hours trading on Thursday after the 3D design software maker delivered better-than-expected quarterly results and issued an encouraging sales outlook amid healthy demand from enterprise and entry-level customers.

The company posted fiscal 2024 fourth-quarter adjusted earnings of $2.09 per share, comfortably ahead of the $1.95 a share figure modeled by analysts. Revenue for the period of $1.47 billion climbed 11% from a year earlier and edged out forecasts of $1.43 billion. Billings of $1.71 billion slipped 19% from last year’s corresponding quarter, reflecting a shift to billing customers with three-year contracts annually, rather than once upfront. Breaking down the top line, design revenue increased 10% year-over-year (YOY), make revenue jumped 16% YOY, and subscription plan sales rose 10% YOY.

The company said it saw resilience from enterprise and entry-level customers during the quarter, but softness in the middle market, while also noting that strength in the U.S. business helped offset a weaker performance in Asia-Pacific.

Looking ahead, Autodesk sees full-year fiscal 2025 sales coming in between $5.99 billion and $6.09 billion, with the lower end of the forecast topping Wall Street’s expectation of $5.96 billion. The company’s midpoint billings projection for the period of $5.885 billion eclipses expectations of $5.836 billion.For the fiscal first quarter ending April 30, Autodesk expects revenue of $1.385 billion to $1.4 billion, compared to analysts’ forecasts of $1.388 billion.

The company highlighted its ongoing efforts to add innovative generative artificial intelligence (AI) to its suite of applications and products.

“Having led the industry in generative design, we are leading again in 3D generative AI. Our new multimodal foundation models will enable design and make customers to automate low-value and repetitive tasks and generate more high-value, complex designs more rapidly and with much greater consistency,” Autodesk’s president and CEO Andrew Anagnost said in the company’s earnings release.

Autodesk shares have continued to climb higher after crossing back above the 200-day moving average in early December last year, with the price now trading above a period of 18-month consolidation. If the stock has a post-earnings rally, monitor a prior triple top pattern as a potential resistance area on the chart between $320 and $335.

Autodesk shares gained 8.5% to $279.99 in after-hours trading.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our warranty and liability disclaimer for more info.

As of the date this article was written, the author does not own any of the above securities.

Read the original article on Investopedia.