February 27th, 2008
ADSK: Autodesk Not as Safe as I Thought
Clearly Autodesk (ADSK) wasn’t as safe as I thought. The question of what to do with it now would be easier if the miss made more sense. Company claims $0.05 reduction in full year EPS is due to accelerated hiring in order to make “product investments.” But if the products are being enhanced, why isn’t the revenue guidance being increased for the full year?
Stock was already cheap (and is much cheaper today) but until the “investments” start to earn a return they are just “costs.” I’d like a better explanation of what’s going on before feeling comfortable with the name again.
Disclosure: No position held
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