Credit Suisse First Boston raises estimates and target on Autodesk (ADSK) after it posts $0.65 fourth quarter EPS (pro forma) and guided $0.40-$0.50 for first quarter EPS (pro forma) and $2.20-$2.30 for fiscal 2003.
Analyst Gibboney Huske says that 4Q beat estimates despite dreary economic backdrop. She says that the leverage in the company's model was clearly demonstrated in fourth quarter by achieving the targeted 20% EBIT margin. She notes that Autodesk raised its fiscal 2003 (Jan.) guidance based on strength seen in 4Q and signs that the economy is firming. Huske sees $1.022 billion fiscal 2003 revenues, which is slightly below the company's guidance of $1.025-$1.045 billion. She raised her $2.15 fiscal 2003 EPS estimate to $2.20, in line with company's outlook. For the first quarter, she sees $0.45 EPS on $244 million in revenues. She raised her $2.35 fiscal 2004 EPS estimate to $2.50. Huske increased her $46 price target to $50.