) is set to report fourth quarter 2013 results on Feb 26. Last
quarter, it posted a 14.8% positive surprise. Let's see how
things are shaping up for this announcement.
Growth Factors This Past Quarter
Autodesk's third-quarter result reflected improving demand
environment in the AEC market. The company has significant growth
opportunities in the AEC and manufacturing markets going forward.
Autodesk believes that the momentum from the BIM product
portfolio will help it to penetrate the construction industry
faster, which is a $7.0 trillion market. We believe that
Autodesk's new cloud-based offerings are gaining traction.
Moreover, the company's focus on expanding its mobile
applications for both Apple's iOS and Google's Android platform
will further drive market share, going forward.
However, a sluggish macro-economic environment, weakness in
emerging markets, customer concentration and increasing
competition from Adobe Systems Inc. are the major concerns.
Moreover, continued investments in new products are expected to
hurt margins in the near term.
Our proven model does not conclusively show that Autodesk is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 21 cents. Hence, the difference is of 0.0%.
Autodesk's Zacks Rank #3 (Hold) when combined with an ESP of
0.00% makes surprise prediction difficult. We caution against
stocks with Zacks Ranks #4 and #5 (Sell-rated stocks) going into
the earnings announcement, especially when the company is seeing
negative estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
AUTODESK INC (ADSK): Free Stock Analysis
BAIDU INC (BIDU): Free Stock Analysis Report
FIRST SOLAR INC (FSLR): Free Stock Analysis
SOLARCITY CORP (SCTY): Free Stock Analysis
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), Earnings ESP of +4.23% and Zacks Rank #2 (Buy)
First Solar Inc
), Earnings ESP of +8.00%and Zacks Rank #1 (Strong Buy)
), Earnings ESP of +1.79% and Zacks Rank #2 (Buy)