May 19, 2010 / 8:28 PM / 9 years ago

UPDATE 3-Autodesk Q1 tops Street; Europe clouds outlook

* Q1 adj EPS $0.29 vs est. $0.22

* Sees Q2 adj EPS $0.23-$0.28 vs est. $0.26

* Shares up 4 pct after market (Recasts; adds CEO comments)

By A.Ananthalakshmi and Sudipto Ganguly

BANGALORE, May 19 (Reuters) - Autodesk Inc’s (ADSK.O) quarterly results topped expectations, helped by a recovery in corporate spending and international growth, but the design software maker remained cautious about its full-year results citing uncertainties surrounding the European economy.

“Going forward, our enthusiasm is tempered somewhat by the devaluation of the euro and the general instability of the European economy,” CEO Carl Bass said in a conference call.

Analysts had expected Autodesk’s second-quarter outlook to be conservative and roughly in line with Street estimates, saying uncertainties in Europe and currency fluctuations may impact sales.

“Any slowdown in European buying could impact the outlook,” Longbow Research analyst Steve Koenig said.

Non-Americas markets account for about 66 percent of Autodesk’s revenue. Europe alone accounts for roughly 42 percent of revenue.

Longbow’s Koenig said the company’s outlook fairly reflects its top-line sensitivity to the continuing economic recovery and resulting operating leverage as Autodesk repairs its margins.

“People are going to be increasing their estimates, may be towards the higher end of the outlook or maybe even above their outlook,” Janney Montgomery Scott analyst Sasa Zorovic said.

Autodesk, the maker of design software AutoCAD used by architects and engineers, is benefiting from pent-up demand in the manufacturing and construction markets — two of its biggest — as corporate budgets loosen from downturn-induced cutbacks.

Autodesk shares were trading up about 4 percent at $31.54 after market. They closed at $30.35 Wednesday on Nasdaq.

The stock has risen about 16 percent in the last three months, while the broader S&P 500 index .SPX has risen about 1.3 percent.

Autodesk expects adjusted operating margin to increase about 300 basis points for the full year.

The company forecast second-quarter adjusted earnings of 23 cents to 28 cents a share, on revenue of $435 million to $460 million.

Analysts on average were looking for earnings of 26 cents a share, on revenue of $443.2 million, according to Thomson Reuters I/B/E/S.

INTERNATIONAL GROWTH BOOSTS Q1

“Our strong first-quarter results reflect the continued improvement in the demand environment for our products and robust revenue growth in our international geographies,” CEO Bass said in a statement.

The San Rafael-based company’s first-quarter net income was $36.9 million, or 16 cents a share, compared with a loss of $32.1 million, or 14 cents a share, a year ago.

Excluding items, it earned 29 cents a share, above analysts’ expectations of 22 cents a share.

Revenue rose 11 percent to $475 million. [ID:nASA00DXW]

Revenue from Europe and Asia Pacific increased in the double digits, while that from Americas fell 1 percent. (Reporting by A.Ananthalakshmi and Sudipto Ganguly; Editing by Unnikrishnan Nair)

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