At current levels or better we consider ADSK a buy/long.
Out of it’s last 10 quarterly earnings reports, 9 has exceeded analyst’s consensus expectations.
Profile: A multinational software corporation that makes software products and services for the architecture, engineering, construction, manufacturing, media, education, and entertainment industries.
As per the company’s Q1 presentation:
First Quarter Fiscal 2022 Financial Highlights
- Total revenue increased 12 percent to $989 million;
- GAAP operating margin was 14 percent, down 1 percentage point;
- Non-GAAP operating margin remained flat at28 percent;
- GAAP diluted EPS was $0.70; Non-GAAP diluted EPS was $1.03;
- Cash flow from operating activities was $336 million; free cash flow was $316 million.
“An acceleration in new business, solid execution, and a resilient subscription business model delivered a strong start to the new fiscal year,” said Andrew Anagnost, Autodesk president and CEO. “As the world rebuilds after the pandemic, Autodesk’s purpose – a better world designed and made for all – has never been more important, and underpins our confidence this year and well into the future.”
“Momentum in our end markets and customer adoption of cloud services is building,” said Debbie Clifford, Autodesk CFO. “We are raising our FY22 revenue guidance to reflect a partial year contribution from acquisitions and remain on track to achieve our FY23 financial goals.”
According to 3Dprintingindustry.com: “On Autodesk’s earnings call, its CEO Andrew Anagnost explained how the firm has benefited from “waning uncertainty” and “growing confidence in its end markets.” “An acceleration in new business, solid execution, and a resilient subscription business model delivered a strong start to the new fiscal year,” said Anagnost.”
Technical Review: Year-to-date, the share has traded in a consolidation range, peaking at $320.94 before testing a low of $252.60 on 08 March. Over the last two trading sessions, the price has cleared it’s downward trend line extending back to the YTD peak, with strong candle structure and a regaining of it’s pivot. Also note, the 14-day RSI is breaking to the upside of it’s multi-month base.
Preferred Trading Levels
Buy ADSK at current levels ($297.74) or better (buy range: $294.00/297.00)
Target Range: $315.00-$321.00
Pre-Market Price: $296.46