Autodesk (NASDAQ:ADSK) is a California-based multinational software corporate that makes software services for a variety of industry, including engineering, architecture, entertainment, manufacturing, and education. Shares have climbed 38% year-over-year as of close on January 21.
The stock has been on a tear since the company released its third-quarter fiscal 2020 results late in 2019.
In the third quarter, Autodesk reported total revenue of $843 million which was up 28% from the prior year. Billings, ARR, earnings, and free cash flow also beat expectations in Q3. The third quarter saw Autodesk achieve a record over the past 12 months as it posted free cash flow of almost $1 billion. Its performance in the manufacturing sector stood as the most impressive so far.
For the full-year, Autodesk is projecting total ARR between $3.40 billion and $3.44 billion, which would represent a 24-25% increase from the prior year. Billings are forecast to jump between 50-51% from fiscal 2019 and hit over $4 billion for FY2020. It expects revenue to rise 27% to between $3.25 billion and $3.27 billion.
Like other high-performing tech stocks, Autodesk currently possesses a sky-high price-to-earnings ratio and a very high price-to-book value.
The stock had an RSI of 75 at the time of this writing, which puts shares of Autodesk well into technically overbought territory. This is an exciting company that is poised for significant growth in the 2020s, but value investors should exercise patience and wait for a more appealing entry point
