Topic: Growth Stocks

The Wall Street Stock Forecaster Hotline – Friday, November 20, 2009

Article Excerpt

AUTODESK INC. $23.81, Nasdaq symbol ADSK, fell 12% this week. That’s mainly because the software maker’s earnings forecast for the current quarter fell short of analysts’ expectations. But the company reported better-than-expected earnings in its latest quarter. Autodesk earned $63.1 million, $0.27 a share, in its third quarter, which ended October 31, 2009. That’s down 51.5% from $130.0 million, or $0.56 a share, a year earlier. These figures exclude several unusual items, including costs related to a restructuring plan that involved cutting over 10% of its workforce and consolidating certain facilities. However, Autodesk expects these cost cuts to lower its expenses by $300 million in the next fiscal year. Without restructuring costs, analysts expected the company to earn $0.23 a share. Revenue fell 31.3%, to $416.9 million from $607.1 million. The weak economy has prompted many of Autodesk’s customers, mainly engineers and architects, to delay upgrading their computer-aided design software. The company spent a high 26% of its revenue on research in…