Autodesk, Inc. shares fell more than 15% on Wednesday after the company reported worse-than-expected third quarter financial results. Revenue rose 5.2% to $151.3 million – beating consensus estimates by $1.83 million – and net losses of 12 cents per share beat consensus estimates by one cent per share. However, guidance for the fourth quarter and the full year came in somewhat lower than expected, and the company is anticipating restructuring charges.
The software company announced plans to prioritize its subscription transition, which will involve the divestment of some of its businesses. As part of this process, Autodesk expects to take a pre-tax charge of $135 million to $149 million, including $91 million to $100 million of that figure in Q4, with the rest occurring next year. Wedbush analysts responded by downgrading the stock to Neutral with a price target of $126.00 per share. (See also: Autodesk: Can It Make Money?)
Autodesk shares fell sharply after its third quarter financial results, but traders will be watching these key levels. …read more
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