Autodesk (ADSK) shares jump on Q4 beat and double-digit revenue growth guide

Shares of Autodesk (NASDAQ: ADSK) jumped over 9% in premarket trading Friday after the software maker posted stronger-than-expected Q4 results and issued a double-digit revenue growth guidance for the full fiscal 2025.

For the FQ4 2024, ADSK posted earnings per share (EPS) of $2.09, topping the consensus estimates of $1.95. The company's quarterly revenue also exceeded forecasts, reaching $1.47 billion against an expected $1.43 billion.

The non-GAAP operating margin remained steady at 36 percent, flat compared to the year-ago period.

Looking ahead, Autodesk projects an EPS in the range of $1.73 to $1.78 for FQ1 2025, which is in line with the higher end of the analyst consensus of $1.78.

Revenue is anticipated to be between $1.385 billion and $1.4 billion, compared to the $1.389 billion expected by analysts.

For the full fiscal year 2025, Autodesk anticipates an EPS between $7.89 and $8.11, compared to analysts' expectations of $8.11.

The company's revenue forecast for the year is set between $5.99 billion and $6.09 billion, slightly above the consensus estimate of $5.978 billion.

"Autodesk remains resilient and underlying demand for our products and services is robust. As a result, revenue grew 14 percent at constant currency in the fourth quarter," said Debbie Clifford, CFO of Autodesk.

"Adjusting the mid-point of our guidance to exclude noise from the new transaction model, acquisitions, the absence of EBA true-up revenue, and FX, we expect underlying revenue to grow more than 10 percent in fiscal 25."

Wolfe Research analyst reiterated an Outperform rating on the stock and the price target of $305.

"In our opinion 4Q was a solid finish to the year while the double-digit revenue growth guidance, stable margin outlook, and FY26 FCF cash flow guidance that was in-line with consensus expectations should be enough to send shares up tomorrow," Tilton said.

"We believe there is upside to the FY25 growth outlook and walk away incrementally more confident that the indirect transition, shift to multi-year paid annually contracts, and multi-year renewal cohort will help re-build FCF in FY25 and beyond," he added.

By Vahid Karaahmetovic

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