Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Autodesk: The Prototype of Growth

With instability in the financial markets and signs of an economic slowdown, tech stocks have come under pressure. Yet in the case of design-software maker Autodesk (Nasdaq: ADSK  ) , it still looks like boom times.

In the third quarter, revenue increased 18% to $538.4 million, and earnings came to $84.8 million, or $0.35 per share -- up 46%. Autodesk also generated $161 million in operating cash flow in Q3. There was strength across nearly all areas, especially in emerging markets like China, India, Russia, and Eastern Europe.

The company is undergoing a major transition in its design software, going from 2-D to 3-D. This makes it much easier for architects and engineers to create new structures in terms of speed, quality, and cost-effectiveness. Autodesk technologies are key in competing against tough rivals like Siemens (NYSE: SI  ) , Parametric Technology (Nasdaq: PMTC  ) , and Dassault Systemes (Nasdaq: DASTY  ) .

Autodesk is also getting traction with its acquisitions, such as the NavisWorks deal. The transaction helped boost the company's 3-D products 32% to $130 million in Q3. According to the conference call, Autodesk plans more tuck-in acquisitions. And with more than $800 million in the bank, there is enough firepower for deal-making.

No doubt Autodesk has built a globally diversified footprint. Less than 35% of revenue comes from the U.S., and the company has products for verticals such as building, manufacturing, infrastructure, and media. Customers range from small companies to Fortune 100 biggies.

What's more, as emerging markets continue to build their infrastructures, there will be a need for Autodesk's software offerings. For Foolish investors seeking a tech stock for the long haul, this one is worth considering.

For more Foolishness:

Read/Post Comments (0) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 540385, ~/Articles/ArticleHandler.aspx, 10/24/2016 3:27:37 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
ADSK $71.18 Up +0.05 +0.07%
Autodesk CAPS Rating: ***
DASTY $83.21 Down -0.49 -0.59%
Dassault Systemes… CAPS Rating: *****
PTC $46.39 Up +0.06 +0.13%
PTC CAPS Rating: *
SIEGY $115.76 Down -0.19 -0.16%
Siemens AG (ADR) CAPS Rating: ****