Ahead of the Bell: Autodesk
NEW YORK (AP) — Autodesk is cutting about 500 jobs and consolidating its leased facilities, which will lead to charges of $40 million to $45 million in its third quarter. The software company's second-quarter results fell short of Wall Street expectations and it lowered its revenue guidance for the year.
Its shares tumbled more than 22 percent before the market opened Friday.
The job cuts are part of broader restructuring plans, which include an ongoing shift to cloud and mobile computing. The company, which has approximately 7,500 employees in total, says that while it is eliminating 500 jobs, it plans to create close to that number of jobs in the coming year.
Autodesk expects about $50 million to $60 million in total restructuring-related charges. While the bulk of the charges will likely occur in the third quarter, most of the remaining amount is anticipated to be taken in the fourth quarter.
It reported second-quarter adjusted earnings of 48 cents per share on revenue of $568.7 million after the market closed Thursday. Analysts polled by FactSet forecast earnings of 49 cents per share on revenue of $593.5 million.
For the full year, the San Rafael, Calif., company now foresees revenue up 4 percent to 6 percent. That's roughly half of previous guidance of a 10 percent rise.
Autodesk Inc. expects third-quarter adjusted earnings of 40 to 45 cents per share on revenue between $550 million and $570 million.
Wall Street predicts earnings of 50 cents per share on revenue of $601.3 million.
Shares fell $7.96 to $27.75 in premarket trading.