Shares of Autodesk Inc. (ADSK, Financial) plummeted 10.31% at $134.72 in after-hours trading on Tuesday despite beating consensus estimates on second-quarter fiscal 2020 earnings by 1 cent.
The U.S. multinational software company posted 18 cents per share, shifting from last year's loss of 18 cents per share.
Revenue came in at $796.8 million, up 30.3% year-over-year and topping projections by $8.82 million.
“We closed a solid first half of the year with a very strong second quarter as revenue, billings, earnings, and free cash flow came in ahead of expectations,” President and CEO Andrew Anagnost said. “ARR grew to a record $3.1 billion, driven by all parts of the business. Construction demonstrated continued strength with wins across all parts of the portfolio, and Fusion 360 -- our design-to-manufacturing platform -- continued to build momentum. We also made further strides in capturing opportunities within our non-paying user base. In an environment of increasing uncertainty, we believe we are well-positioned to achieve our FY23 goals.”
Moreover, total billings were $893 million, up 48%, and free cash flow rose to $205 million in the second quarter of fiscal 2020 from $24 million in the second quarter of fiscal 2019.
For full fiscal 2020, Autodesk guided for revenue of $3.24 billion to 3.27 billion versus consensus of $3.28 billion. The company also forecasted earnings per share of $2.69 to $2.81 versus consensus of $2.81.
For the third quarter of fiscal 2020, Autodesk expects revenue at $820 million to $830 million versus consensus of $838.78 million and earnings per share of 70 cents to 74 cents compared to consensus of 77 cents.
The balance sheet had approximately $991.3 million in cash on hand and short-term securities.
The share price was $150.21 at close on Tuesday for a market capitalization of about $32.99 billion. The share price is below the 200-, 100- and 50-day simple moving average lines following a 4% decline in the past year through Aug. 27. The 52-week range is $117.72 to $178.95.
Wall Street recommends an overweight rating with an average target price of $187.36.
Disclosure: I have no positions in any security mentioned.
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