Autodesk reports less than expected profits, share down 15 percent

Autodesk, Inc. shares showed a massive downfall in the early afternoon trading Friday. The stock was 15 percent down as the company announced its quarterly earnings for the third quarter. The stock took a beating due to some major restructuring efforts taken in the past few weeks and the poor global economy.

The makers of design and architecture software were down due to some internal and external factors, said Matthew Hedberg, analyst for RBC Capital Markets.

“Autodesk reported a disappointing quarter due primarily to company specific execution issues magnified by an uneven global economy,” he noted on Friday.

Autodesk stated earlier that its will 520 jobs in a process this year and will make its move toward cloud computing, which will eventually help developers and users compute, share and download files and applications through internet.

The 7 percent cut in the workforce will help the company store and share data over the internet through cloud computing, said Hedberg. However, due to aggravating global economic condition it is not expected anytime soon. Autodesk’s “specific execution issues … will likely take several quarters to resolve,” said Hedberg.

The company announced a profit of 48 cents per share which was a fraction short of expected profit this year estimated by experts. However, on the bright side, it was 9 percent more than the year-ago numbers.

Overall operational revenues were up 4 percent from a year-ago to $568.7 million, but were short of the expected $593.4 million by the analysts.

In the light of the above, Autodesk has cut down its expectation for the upcoming fiscal year. Previously, the company estimated a 10 percent growth but now it hangs between 4 to 6 percent. It had a total revenue of $2.2 billion last year.

However, it was not only Autodesk the victim in the stock exchange. Rival companies Ansys  and Parametric Technology were down 1 and 2 percent, respectively.

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Posted by Usman Khalid on Aug 27 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.