Autodesk Raises Annual View

Autodesk Inc. on Thursday raised financial projections for the year as results for the most recent period beat projections.

Shares, up 5% this year, rose 4% in after-hours trading to $66 as the company reported an unexpected second-quarter profit on an adjusted basis.

The San Rafael, Calif., company now projects an adjusted loss of 55 cents to 70 cents a share on $2 billion to $2.05 billion in revenue for the year, compared with its earlier view of an adjusted loss of 70 cents to 95 cents a share on $1.95 billion to $2.05 billion in revenue.

It affirmed its guidance of 475,000 to 525,000 additional subscriptions.

For the current quarter, it projects an adjusted loss of 22 cents to 27 cents a share on $470 million to $485 million in revenue, compared with analysts' projection of a loss of 28 cents a share on $468.5 million in revenue, according to Thomson Reuters.

Autodesk, which has reported a string of losses and revenue declines as it shifts to a subscription-based model, makes three-dimensional design, engineering and entertainment software.

In the latest period, Autodesk added 109,000 subscriptions from the previous quarter, ending the quarter with 2.8 million subscriptions.

Overall, Autodesk reported a loss of $98.2 million, or 44 cents a share, compared with a loss of $268.6 million, or $1.18 a share, a year earlier. Excluding stock-based compensation and other items, Autodesk reported a profit of 5 cents a share, down from 19 cents a share a year earlier.

Revenue fell to $551 million, down 10% from the year earlier or 6% when adjusted for currency fluctuations, the company said.

Autodesk had projected a loss of 63 cents to 73 cents a share, or 11 cents to 18 cents on an adjusted basis, on $500 million to $520 million in revenue.

Gross profit margin narrowed to 84.5% from 84.7% a year earlier, while operating expenses rose 3%.

Write to Maria Armental at [e-mail]

(END) Dow Jones Newswires

August 25, 2016 17:05 ET (21:05 GMT)

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