Autodesk (NASDAQ:ADSK) announced first-quarter results that fell short of estimates. The company posted revenues of $1.42 billion, an increase of 12% year-over-year, but below the consensus estimate of $1.48 billion. The provider of software products for engineering and architecture reported Q1 adjusted earnings of $1.87 per share, up by 20.6% year-over-year, but short of the expected $1.98 per diluted share.
Autodesk’s Q1 Revenues Breakdown
The company’s revenues were largely driven by an 11% growth in subscription revenues. ADSK generates subscription revenues through product subscriptions and cloud service offerings. The company’s architecture, engineering, and construction (AEC) software business continued to be the largest contributor to its revenues with a more than 40% share.
Is ADSK a Good Stock to Buy?
Analysts remain cautiously optimistic about ADSK stock, with a Moderate Buy consensus rating based on nine Buys, six Holds, and one Sell. Year-to-date, ADSK has declined by more than 10%, and the average ADSK price target of $273.80 implies an upside potential of 25.5% from current levels. These analyst ratings are likely to change following ADSK’s Q1 results today.
