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Autodesk (ADSK)

Needham & Co. rates hold; changes estimates

Needham & Co. analyst Richard Davis said in a Nov. 18 note that visibility into a fiscal 2011 recovery for the design-automation software maker's earnings is cloudy. Davis said Autodesk's $416.9 million in third-quarter revenues and non-GAAP earnings per share (EPS) of 27 cents compare to his respective $415 million and 22 cents estimates. He noted that the company's fourth-quarter guidance was largely consistent with expectations.

Davis said his hold rating on Autodesk was based on "insufficient, equivocal" data collected to date as to how fast revenues will recover to recent peak levels. He notes that if that figure is reached sometime in 2012, the stock "probably should be a buy"; if the date is 2013 or beyond, the shares will likely advance roughly in line or perhaps slower than overall market.

Davis raised his fiscal 2010 (ending January) EPS estimate from 90 cents to 92 cents and cut his $1.10 fiscal 2011 EPS forecast to $1.02.

Salesforce.com Inc. (CRM)

FBR Capital Markets reiterates market perform

Lazard Capital Markets maintains buy

Shares of Salesforce.com Inc. slid on Nov. 18 as the company signaled it intends to keep hiring, which will likely push up costs. Salesforce.com, which provides software to help companies manage customer relations, said late Tuesday that its third-quarter profit more than doubled from the year before, matching Wall Street forecasts. But it also recorded rising expenses.

In a conference call with analysts, Salesforce.com said it hired about 160 people in the third quarter, bringing its work force to roughly 3,800. The company said it plans to keep up that rate of hiring in the fourth quarter.

The bigger head count was reflected in third-quarter results, FBR Capital Markets David Hilal told clients in a note. Hilal said the San Francisco company needs to turn a better profit given its revenue and stock valuation.

Lazard Capital Markets analyst Joel Fishbein took a more upbeat view, telling clients in a note that "Salesforce.com is executing very well in its core business" and "is well positioned for long-term growth."

The company said it signed up 4,700 new customers during the quarter, bringing its total to 67,900.

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