Is Autodesk (ADSK) Poised to Beat Earnings this Season? - Analyst Blog

Autodesk, Inc. ( ADSK ) is set to report second quarter 2015 results on Aug 14 after markets close. The company has posted an average positive earnings surprise of 20.35% over the past four quarters.

Let's see how things are shaping up for this announcement.

Growth Factors this Past Quarter

Autodesk has significant growth opportunities in the AEC and manufacturing markets. We believe Autodesk's new cloud-based offerings are gaining traction. Moreover, the business transition toward cloud-based software and services will boost the company's profitability.

Moreover, the company's focus on expanding its mobile applications for both Apple's ( AAPL ) iOS and Google's Android platform with the introduction of features like Sketchbook Pro 7 will further drive market share.

However, increasing competition from Adobe is a concern. Moreover, continued investments in new products are expected to hurt margins in the near term. Moreover, the departure of its Chief Financial Officer (CFO) Mark Hawkins during the quarter may prove to be a headwind for the company.

Earnings Whispers?

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 Earnings ESP and a Zacks Rank of #1, 2 or 3 for this to happen. That is not the case here as you will see below.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate stand at 17 cents. Hence, the difference is of 0.00%.

Zacks Rank #3 (Hold): Autodesk's Zacks Rank when combined with a 0.00% ESP makes surprise prediction difficult.

We caution against stocks with Zacks #4 and #5 Ranks (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:

Nimble Storage, Inc. ( NMBL ), Earnings ESP of +25.0% and a Zacks Rank # 3

TIM Participacoes ( TSU ), Earnings ESP of +16.67% and a Zacks Rank # 3

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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