Software solutions provider Autodesk ($ADSK) reported strong third-quarter results on November 27, with both sales and earnings surpassing analysts’ expectations and reflecting year-over-year growth. Importantly, ADSK’s performance would not have surprised users who closely monitor its website traffic using TipRanks’ Website Traffic Tool.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Investors should note that the tool gathers data about a company’s website performance over a specific time frame. This information can be used to predict the upcoming earnings report, as growth in online usage may point to higher sales.
Learn how Website Traffic can help you research your favorite stocks.
Website Traffic Showed Uptrend
Ahead of the Q3 earnings release, the website traffic tool showed that total estimated visits for autodesk.com increased by nearly 22% year-over-year in the August-October period. The increase in website traffic pointed to solid top-line performance.
Eventually ADSK reported revenues of $1.57 billion, up 11.3% from the year-ago quarter. Also, it surpassed the average consensus estimate of $1.56 billion. The company’s top-line growth was primarily attributable to higher subscription revenues.
Mixed Analysts’ Sentiment Post Q3 Results
Following the release of Q3 earnings, six Top analysts reiterated a Buy rating on ADSK stock, and their price targets imply an upside potential between 11.8% and 22.1%.
Among the bullish analysts, Blair Abernethy from Rosenblatt Securities expects the company to benefit from its direct billing model, rolled out in the U.S. in June. Also, the analyst sees recovery in the Media & Entertainment segment along with strong demand for Autodesk’s Fusion platform, which combines several software tools into a single solution.
Nevertheless, a Top-rated analyst from HSBC (HSBC), Stephen Bersey, downgraded the rating on ADSK stock to Hold from Buy. Also, he lowered the price target to $290 from $299, implying about 0.22% downside potential from the current level. (To see Bersey’s track record, click here.)
Is ADSK a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating based on 14 Buys and nine Holds assigned in the past three months. At $329.30, the average Autodesk price target implies a 13.3% upside potential. Year-to-date, shares of the company have gained 19.37%.
