Autodesk, Adobe Systems, Apple, Avid Technology and Sony

CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Autodesk, Inc. (Nasdaq: [ ADSK ]), Adobe Systems Inc. (Nasdaq: [ ADBE ]), Apple Inc. (Nasdaq: [ AAPL ]), Avid Technology (Nasdaq: [ AVID ]) and Sony (NYSE: [ SNE ]).

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Here are highlights from Thursdaya�s Analyst Blog:

Autodesk Beats Easily

Autodesk, Inc. (Nasdaq: [ ADSK ]) reported better-than-expected fiscal first quarter 2011 results, with diluted earnings per share and revenue increasing 58.8% and 11.5%, respectively, from the year-ago period.

Net income on a non-GAAP basis was $64.5 million in the first quarter, up 58.4% year over year from $40.7 million. Diluted earnings per share on a non-GAAP basis increased 58.8% year over year to 29 cents. This was well ahead of the conservative Zacks Consensus Estimate of 16 cents and beat the high end of the company's guidance between 18 cents and 23 cents, primarily based on strong year-over-year revenue growth in international markets and recovery in corporate spending.

The company experienced strong year-over-year growth in maintenance billings and commercial new licenses in the first quarter, which along with the continued focus on cost control led to significant improvement in operating profits.

For the second quarter, management expects revenue between $435.0 and $460.0 million. Diluted earnings per share on a non-GAAP basis is expected in the range of $0.23-$0.28 and, on a GAAP basis, in the range of $0.12 to $0.17. The effective tax rate is expected to be 27% and excludes any benefit from the R&D tax credit.

For full year 2011, management did not provide any particular guidance. However, they expect GAAP operating margin to increase significantly compared to 2010. Non-GAAP operating margin is expected to increase by approximately 300 bps in 2011.

Management remains somewhat cautious due to de-valuation of the euro and the general instability of the European economy. However, they expect a strong global demand environment going forward.

We believe a weak European economy will temper Autodesk's growth over the coming period. With around 40% of first quarter revenue coming from the region, any softness in Europe would have a significant negative impact. Moreover, the company can also face some foreign exchange headwind as it is not fully hedged.

Although Autodesk has a strong market position in the "mainstream" CAD market, it faces competition from Dassault Systems. Moreover, the company competes against Adobe Systems Inc. (Nasdaq: [ ADBE ]), Apple Inc. (Nasdaq: [ AAPL ]), Avid Technology (Nasdaq: [ AVID ]) and Sony (NYSE: [ SNE ]), among others.

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Autodesk, Adobe Systems, Apple, Avid Technology and Sony