FINWIRES · TerminalLIVE
FINWIRES

Autodesk Delivered Solid Fiscal Q1 Beat and Raise, MaintainX Deal Raises Questions, RBC Says

By

Autodesk (ADSK) posted a strong fiscal Q1 beat-and-raise quarter, but the company's $3.6 billion acquisition of MaintainX raises investor questions regarding organic growth and margins, RBC Capital Markets said in a note Friday.

RBC said that while the acquisition price seems "somewhat steep" initially, it seems "more reasonable looking forward a few years at elevated growth and as the foundation for operational expansion."

Also, Autodesk expressed confidence in being able to absorb margin dilution within previous margin outlooks, which is encouraging, the note said.

Meanwhile, the acquisition will likely further allow Autodesk to "make a valid case for why it should be well positioned to help define the next generation of industrial AI," the investment firm said.

RBC kept Autodesk's outperform rating and decreased the company's price target to $305 from $335.

Price: $231.62, Change: $-9.33, Percent Change: -3.87%

Related Articles

Wire

Estrella Resources Says Electromagnetic Survey Completed at East Timor Manganese Project; Shares Up 4%

Estrella Resources (ASX:ESR) said an unmanned aerial vehicle passive electromagnetic geophysical survey was completed at its Ira Miri manganese project in East Timor, according to a Friday Australian bourse filing.Results from the survey are expected to rank and prioritize deeper drill targets beneath and adjacent to the current Ira Miri pit as well as refine the company's geological and structural model of the Ira Miri manganese system, per the filing.The company's shares rose nearly 4% in recent trading on Friday.

ASX:ESR
Wire

Nextpower to Acquire Prevalon Energy, Raises Fiscal 2027 Outlook; Shares Gain After Hours

Nextpower (NXT) agreed to acquire Prevalon Energy, a US joint venture between Mitsubishi Power Americas and EES, for up to $365 million in cash and stock to expand into battery storage and AI data-center infrastructure markets.The transaction is expected to close in Q2 of fiscal 2027, Nextpower said Thursday in a statement.The company also raised fiscal 2027 guidance to adjusted diluted EPS of $4.30 to $4.73 on revenue of $4 billion to $4.4 billion. The prior outlook was EPS of $3.19 to $3.56 on revenue of $3.8 billion to $4.1 billion.Analysts polled by FactSet expect EPS of $4.54 on revenue of $4 billion.Nextpower shares rose 7.9% in after-hours trading.

$NXT
Wire

Gap Fiscal Q1 GAAP Earnings, Revenue Rise

Gap (GAP) reported fiscal Q1 adjusted earnings late Thursday of $0.38 per diluted share. The company did not provide comparable adjusted earnings for the year-ago quarter. Analysts polled by FactSet expected $0.37.The company reported GAAP earnings of $0.90 per diluted share, up from $0.51 a year earlier.Revenue for the 13 weeks ended May 2 was $3.50 billion, up from $3.46 billion a year earlier.Analysts surveyed by FactSet expected $3.52 billion.For Q2, the company expects net sales to be flat to down 1% year-over-year.For fiscal 2026, the company now expects adjusted EPS of $2.30 to $2.40, up from the prior forecast of $2.20 to $2.35. Analysts expect $2.29.The company now expects fiscal 2026 net sales to be up 1% to 2% year-over-year, versus the prior outlook for 2% to 3% growth.

$GAP