Is the 15% Sell-Off of Autodesk, Inc. Shares Overblown?

Is the 15% Sell-Off of Autodesk, Inc. Shares Overblown?

Shares of Autodesk, Inc. (NASDAQ: ADSK), a software corporation that makes software for the architecture, engineering, construction, and media industries, among others, are down 15% Wednesday as of 10:45 a.m. EST, after investors reacted to restructuring news and guidance in the company's fiscal third-quarter 2018 report.

Autodesk announced it would reduce headcount by 13%, or roughly 1,150 jobs, as it continues to transition to a subscription-based model. The kicker, and driving force behind the stock's decline Wednesday, was reduced full-year guidance for subscription additions: from 625,000-675,000 to 625,000-650,000. In terms of the top and bottom lines, Autodesk grew revenue and narrowed its adjusted loss. Revenue increased 5% to $515 million, compared to the prior year's third quarter, and was up 6% on a constant-currency basis. The company's adjusted net loss per share checked in at $0.12, compared to an adjusted net loss of $0.18 per share during the corresponding period last year. Autodesk's results managed to top analysts' estimates calling for a loss of $0.13 per share on revenue of $514 million. 

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Source: Fool.com