Autodesk Inc. (ADSK) shares declined in the extended session Thursday after the enterprise software company’s outlook overshadowed its earnings beat. Autodesk shares fell as much as 6% after hours, following a 2.1% rise in the regular session to close at $221.16.
The company reported fourth-quarter net income of $293 million, or $1.35 a share, compared with $89 million, or 40 cents a share, in the year-ago period. Adjusted earnings, which exclude stock-based compensation expenses and other items, were $1.86 a share, compared with $1.50 a share in the year-ago period. Revenue rose to $1.32 billion from $1.21 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast $1.81 a share on revenue of $1.31 billion.
Autodesk’s outlook for the first quarter and the year were lower than the analysts’ estimates. Autodesk forecast earnings of $1.50 to $1.56 a share on revenue of $1.26 billion to $1.28 billion for the first quarter, and $6.98 to $7.32 a share on billings of $5.03 billion to $5.18 billion for the year. Analysts had estimated $1.64 a share on revenue of $1.27 billion for the first quarter, and $7.38 a share on billings of $5.62 billion for the year.
The weaker outlook from Autodesk was a surprise to the market, as the company had delivered strong growth over the past year. Autodesk had seen its stock surge more than 50% since the beginning of 2020, as the company benefited from the shift to remote work and the increased demand for its software products.
The company had reported better-than-expected earnings in the third quarter, driven by strong growth in its subscription-based software products. Autodesk had also seen an increase in its deferred revenue, which is an indication of future demand for its products.
Analysts had expected Autodesk to maintain its strong growth in the fourth quarter, as the company continued to benefit from the shift to remote work. But the company’s outlook for the first quarter and the year was weaker than expected, which sent its shares lower in the after-hours trading session.
The weaker outlook was likely due to the fact that Autodesk had already seen strong growth in its subscription-based software products over the past year, and the company may have been expecting a slowdown in demand. Autodesk may also have been expecting a slowdown in its deferred revenue, as the company had already seen an increase in its deferred revenue in the third quarter.
Overall, Autodesk’s outlook was weaker than expected, which sent its shares lower in the after-hours trading session. The company had seen strong growth over the past year, but the outlook for the first quarter and the year was weaker than expected, which may indicate that the company is expecting a slowdown in demand for its software products. Investors will be closely watching Autodesk’s performance in the coming quarters, to see if the company can maintain its strong growth.
