Shares of Autodesk Inc. (ADSK, Financial) fell more than 15% on Wednesday after the company reported financial results for the third quarter Tuesday evening. Revenue grew 5.2% to $515.3 million, but earnings registered a loss of 12 cents per share. The company managed to beat earnings expectations a penny and revenue estimates by $1.83 million.
President and CEO Andrew Anagnost is pleased with the company's progress, saying it is "experiencing healthy trends."
"As we enter the growth phase of our model transition, we need to re-balance investments to focus on our strategic priorities," he said. "This includes divesting from some areas and increasing our investment in others. We're taking this restructuring action from a position of strength. This is not a cost reduction activity as we maintain our commitment to keep total non-GAAP spend flat this year and next."
Moreover, the company announced a restructuring plan to improve the subscription transition, the digitizing of the company and reimagining manufacturing, construction and production. Autodesk wants to realign its investments to focus on its long-term goals.
Shares of Marvell Technology Group Ltd. (MRVL, Financial) lost approximately 4% despite announcing good financial results for the third quarter. EPS of 34 cents beat estimates by one cent. Revenue of $616.3 million beat expectations by $2.97 million, but declined 5.8% year over year.
"Our strong performance in the third quarter is a direct result of growth in our core businesses and improved execution across the company, enabling us to continue to unlock the earnings power of Marvell," President and CEO Matt Murphy said.
Looking ahead, guidance appears to be solid. For the fourth quarter, the company expects revenue to be between $595 million and $625 million. GAAP and non-GAAP gross margins are expected to be around 62%. Further, GAAP diluted EPS from continuing operations is expected to range from 23 cents to 29 cents per share, while non-GAAP diluted EPS from continuing operations is expected to be between 29 cents and 33 cents per share.
Disclosure: The author holds no position in any stocks mentioned.
