ADSK - Why Autodesk Stock Is Sinking Today
Shares of Autodesk (NASDAQ: ADSK) are sinking today, down 11.4% as of 11:17 a.m. ET. The software provider posted strong fourth-quarter earnings for fiscal year 2023, but investors were disappointed with cash flow guidance for fiscal year 2024. Here are some more details about the earnings report and what it could mean for Autodesk stock.
Autodesk's fiscal year 2023 -- covering the 12 months ending in January of this year -- looked solid across the board. Revenue grew across all its geographies, including 18% in the United States, with its four major segments (architecture/construction, manufacturing, media, and AutoCAD) all growing sales as well. The company showed strong profitability in the period, generating free cash flow of $2 billion for the full year.
So why are shares falling today? It all comes down to its free-cash-flow (FCF) guidance for fiscal year 2024, the year we are currently in. This year, management expects FCF generation to almost get cut in half to $1.2 billion, even though revenue is expected to grow by 7% to 9% year over year. While concerning at first glance and likely why the stock is down, this is not a huge deal for long-term shareholders.
For further details see:
Why Autodesk Stock Is Sinking Today