Tomahawk, WI 8/26/2013 (BasicsMedia) – Design application software maker Autodesk Inc (NASDAQ:ADSK)’s shares surged 7.69% on the stock exchange marking a record high in the latest reported quarterly results. The company reported a better than expected quarterly performance in the 2Q14. This is the stock’s second surge this week. Previously the stock peaked to its record high price of $0.40, immediately after its 2Q14 results were announced on Thursday. Also this is the second time the company’s stock price shoot past its 200 day moving average.

In its earnings release the company announced that its revenues remained in the “average” frame despite an overall strong market for its end product. The reason for a gloomy revenue outlook was cited as a “mixed” demand pattern among the end users in the end user and PLM companies. Despite a decline in EPS against 2Q13 EPS the company managed to beat analyst’s expectation for profit of $0.42 a share by a slight margin.

Autodesk, a design software company is well known for its run time design suites AutoCAD. Its products are mainly design simulation applications that help create dynamic digital-prototypes of their new product ideas.  The design software provider has a multi-legged revenue model including PESB- (Platform solutions and emerging businesses), AEC (Architecture and Construction Engineering, MFG (Manufacturing) and M&E (Media & Entertainment).

The primary customers segment consists of emerging businesses, industrial manufacturing concerns, Engineering & building constructors, entertainment and digital media companies. In it official press release the company named this quarter’s Architecture and Engineering Construction-AEC as the star performing segment in its revenue model. The segment performed especially well in the American market and APAC following the boom in the building construction industry.

The BIM product portfolio enhanced the growth rate of in this revenue generating segment. BIM products are currently supporting the AEC suit of the company as well as its cloud based product BIM360. The manufacturing segment of the company also saw a solid growth owing to the high demand from the automotive sector; global car makers and key suppliers found its products more useful, the company’s press release reported.

Considering a wide and all inclusive software application portfolio the company is an ideal candidate for strategic partnerships and collaborations. Not to mention the company (though originally an enterprise based business) is also expanding in consumer (end user) market since the past few years and it currently reports an approximate 50 million active users a month.  The number is expected to grow in the coming years so investors can expect marginally improved performance.

Recurrent acquisitions, product innovation capacity of the company holds a strong potential for growth. It has been engaged in repeated takeover transactions, asset acquisitions and product launches, the latest being its AutoDesk point layout that was launched just a day ahead of the release of 2Q14 results.  The same day the stock received an upgrade to “Buy” from B. Reily and Co. Analysts anticipate a stronger performance in 3Q14 with a consensus EPS of $0.5; the company anticipates a comparatively constrained EPS of up to $0.40.

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