Science & Technology
Science and Technology
Science and Technology
Tue, June 29, 2010
Mon, June 28, 2010 Autodesk, Adobe Systems, Apple, Avid Technology, Sony and Thomson Reuters
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 ]), Sony Corporation (NYSE: [ SNE ]) and Thomson Reuters Corporation (NYSE: [ TRI ]).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=4579 ].
Here are highlights from Fridaya™s Analyst Blog:
Autodesk Raised Guidance
Autodesk Inc. (Nasdaq: [ ADSK ]), on June 24 (investor day), raised the low end of its second quarter 2011 earnings and revenues guidance, due primarily to strong global demand. Autodesk also provided its long-term business outlook.
Autodesk expects non-GAAP earnings per share (excluding stock based compensation expense and one-time charges) between 25 centsand 28 cents, compared with the previous guidance of 23 cents to 28 cents.
GAAP earnings per share are estimated in the range of 14 cents to 17 cents, including 6 cents related to stock based compensation expense, 4 cents for amortization of acquisition related intangibles and 1 cent of restructuring charges. The previous GAAP earnings per share guidance came in the range of 12 cents to 17 cents.
The current Zacks Consensus Estimate calls for 20 cents in earnings per share, excluding one-time charges but including stock based compensation. This is a 33% increase from the reported earnings of 15 cents in the year-ago period. This is one cent above the companya™s low end guidance range of 19 cents (including stock based compensation expense). Autodesk anticipates tax rate of 26.0% on a GAAP basis and 27.0% on a non-GAAP basis.
Second quarter 2011 total revenue is expected between $445.0and $460.0 million, compared with theprevious guidance of $435.0 to $460.0 million. The Zacks Consensus Estimate is at$457.0 million.
Long Term Outlook
For the next five years, Autodesk set a target of 12% to 14% compound annual revenue growth (CAGR) and expects to achieve non-GAAP operating margin of at least 30%, thereby augmenting shareholder value. Management is also looking forward to maximize cash flow by optimizing capital allocation.
Autodesk remains positive on a long-term basis primarily because of expanding market share, new consumer growth, superior technology and a diversified product pipeline.
We believe Autodeska™s robust product portfolio caters to large enterprises, small and medium businesses, professionals and individual customers. Autodesk plans to broaden its customer base by new competitive wins, growth in new accounts and subscription, portfolio expansion and increasing penetration in emerging markets such as Brazil, China and India.
3D is becoming an integral part of film production, video game development and television, ensuring considerable growth for the company.
Autodeska™s expertise in 3D technology has made it a compulsory choice for the game makers. The company expects to achieve strong growth through its premium offerings and expansion of its middleware and Autodesk FBX software. The company further expects to expand in the3D interactive media market over the long term.
The company expects strong growth from the Architecture, Engineering and Construction (AEC) segment due to new products and delivery methods, increasing penetration into emerging markets and cost efficient production capability.
Autodesk has a diversified revenue growth base with Americas contributing 38.0%, EMEA 39.0% and Asia Pacific 23.0%.
The company continues to grow its maintenance revenues and installed base. Autodesk expects low channel inventory and increasing efficiencies through channel partner framework, simplified upgrade pricing mechanism and electronic software delivery to drive top line growth going forward.
Despite its continued investment in R&D, sales and marketing throughout the recession, Autodesk was able to save $312.0 million on a non-GAAP basis in fiscal 2010 versus 2009. Management believes strict cost control will be the primary operating margin growth driver in the long run.
We expect increasing cash generation and an improving cash conversion cycle, in addition to investments in organic growth, buyback of shares and accretive merger and acquisitions to enhance shareholder value going forward.
First Quarter Highlights
Autodesk reported strong first quarter 2011 results, with earnings per share and revenues up 58.8% and 11.5%, respectively. The year-over-yearadvance was primarily driven by strong revenue growth from international markets and higher maintenance billings and commercial new licenses.
Operating margin spiked up 140 basis points in the first quarter, primarily driven by cost control and a higher revenue growth.
Maintain Neutral
We maintain a Neutral recommendation on Autodesk, given the softness in the European economy, whichcould have a negative impact in the near term as around 40% of the companya™s revenue come from this region. Autodesk may also face some foreign exchange headwinds. However, in the long term we remain positive on the company.
Although Autodesk has a strong market position in the "mainstream" CAD market, it faces stiff competition from Dassault Systems. Moreover, the company competes against Adobe Systems Inc. (Nasdaq: [ ADBE ]), Apple Inc. (Nasdaq: [ AAPL ]), Avid Technology (Nasdaq: [ AVID ]), Sony Corporation (NYSE: [ SNE ]) and Thomson Reuters Corporation (NYSE: [ TRI ]).
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=5514 ].
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: [ http://at.zacks.com/?id=5516 ].
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at [ http://at.zacks.com/?id=4580 ].
Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.
Follow us on Twitter: [ http://twitter.com/zacksresearch ].
Join us on Facebook: [ http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts ].
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
