Autodesk stock (NASDAQ: ADSK) traded 15% higher on Friday morning, after posting earnings that beat analyst estimates.
The software maker reported earnings per share of $0.19 and total revenue of $612 million, above Wall Street expectations of $0.16 and $600 million. Autodesk Management raised its revenue guidance for the 2019 fiscal year to $2.485-2.505 billion.
CEO Andrew Anagnost explained that, “Our strong Q2 results led by 28% growth in recurring revenue reflect a healthy demand environment.” Since Autodesk changed to a subscriber revenue model, it has added 1.7 million net subscriptions.
In reviewing the market cycles for Autodesk (ADSK), we can see that the stock has started the rising phase of a new cycle.
The stock’s recent history has produced a positive pattern, which is likely to hit $165 in the near-term.
It is notable however that Autodesk’s valuation is sky high, which is based on part on big expectations through 2020.
Autodesk Stock Chart (ADSK) with Weekly Bars
For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.
Twitter: @askslim
Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
