Autodesk (NASDAQ :ADSK) the stock takes a hit on Wednesday after the software company reported mixed earnings for its fiscal third quarter of 2022.
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Let’s get rid of the positive news first. Autodesk reported adjusted earnings per share of $ 1.33 on revenue of $ 1.13 billion. Both of these are better than Wall Street’s estimate of $ 1.26 per share and revenue of $ 1.12 billion.
So where does the bad news come from? The company’s forecast for the full year 2022 has been revised and investors are not happy with some of the changes. That includes that he expects billings to range between $ 4.74 billion and $ 4.8 billion. For the record, its previous forecasts were for billings ranging from $ 4.86 billion to $ 5 billion.
To go along with that, the company lowered its adjusted EPS outlook to $ 4.98 to $ 5.04, from $ 4.91 to $ 5.06 previously. The same goes for its forecast revenue of $ 4.36 billion to $ 4.38 billion. The company’s previous forecast was for revenues ranging from $ 4.35 billion to $ 4.39 billion.
Debbie Clifford, Chief Financial Officer of AutoDesk, said the following in her most recent earnings report.
“Demand was strong in the third quarter, driving strong growth in new subscriptions and renewal rates. We expect it to remain so in the fourth quarter. However, supply chain disruption and resulting inflationary pressures, a global labor shortage and the ebb and flow of COVID are impacting the pace of our recovery and our outlook. “
ADSK is experiencing intense discussions with the publication today of its third quarter earnings report. This has some 6 million shares in motion at the time of writing. That’s a little more than the roughly 1.4 million stocks that trade on average every day.
ADSK stock was down 17.3% on Wednesday afternoon.
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At the time of publication, William White had (directly or indirectly) no position in any of the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to the publication guidelines of InvestorPlace.com.