The software company Autodesk Inc. (ADSK, Financial) will release its financial results for the third quarter of fiscal 2018 after the market closes on Nov. 28.
Autodesk, which is traded on the Nasdaq with a market capitalization of 28.01 billion, produces and sells its software to several industries, including the architecture, construction, engineering, manufacturing, entertainment and media industries.
For the quarter, analysts expect Autodesk to report a loss of 13 cents versus an 18-cent loss in the prior-fiscal year quarter.
The forecast for the third quarter of fiscal 2018, which ended Oct. 30, is a mean of 21 estimates which have a low of a loss of 15 cents to a high of a loss of 4 cents.
Source: Yahoo Finance
Revenue is forecasted to be $513.77 million. This is a 4.90% increase from one year ago and a mean of 18 estimates.
Source: Yahoo Finance
As of the most recent quarter, the company has approximately $1.71 billion in cash and securities, or $7.79 per share. The total debt amounts to $1.58 billion and the total debt-to-equity ratio is 502.35 versus an industry average of 20.38. This means the company is highly more leveraged than its peers. The interest coverage ratio is -4.45 and this means that the software company is possibly encountering troubles in paying interest expenses on outstanding debt.
GuruFocus gives Autodesk a financial strength rating of 5 out of 10 and a profitability & growth rating of 5 out of 10.
Analysts forecast 325.90% growth in the company’s earnings from fiscal 2018 to fiscal 2019 and average growth of 156.60% per annum over the next five years.
Autodesk is currently trading at $127.77 per share on the Nasdaq, book value per share at 88.79 times and sales (ttm) at 14.41 times. The EV/Ebitda ratio is -71.75.
The forward P/E ratio is 106.38. When it is multiplied by the average 2019 EPS forecast of $1.22, it yields a value of $129.78 per share. For full fiscal 2018, analysts forecast a loss of 54 cents.
Disclosure: I have no positions in Autodesk Inc.
