Autodesk (NASDAQ:ADSK) shares rose more than 6.5% in premarket Thursday after the company reported Q2 results.
EPS of $1.91 came in better than the consensus estimate of $1.73. Revenue grew 9% year-over-year (up 12% at constant exchange rates) to $1.35 billion, beating the consensus estimate of $1.32B.
Total billings fell 8% to $1.095B. Current remaining performance obligations were $3.5B, representing a 12% year-over-year growth.
"Our sustained momentum in the second quarter, and early expansion of some enterprise business agreements expected to renew later in the year, reduce the likelihood of our more cautious forecast scenarios. Given that, we are raising the lower end of our guidance ranges," said CFO Debbie Clifford.
For Q3/24, the company expects EPS in the range of $1.97-$2.03, compared to the consensus of $1.92, and revenue in the range of $1.38B-$1.395B, compared to the consensus of $1.38B.
For the full year, the company expects EPS of $7.30-$7.49, compared to the consensus of $7.28, and revenue of $5.405B-$5.455B, compared to the consensus of $5.41B.
Berenberg analysts said the results are encouraging. Still, they cut the price target to $228.50 from the prior $230 to reflect minor revisions to the near-term growth estimates.
"Despite near-term headwinds, we are bullish about structural digitisation tailwinds behind Autodesk, and confident about its double-digit run-rate growth potential. We remain a buyer of the name and reiterate our Buy rating."
Deutsche Bank analysts hiked the PT to $230 per share.
"Despite all of the moving pieces, we view the quarter as reinforcing the bull thesis around the company's market leadership and ability to execute in a choppy macro environment though believe bear fears around macro related demand concerns will continue to persist," they said.
(Additional reporting by Senad Karaahmetovic)