Autodesk, Inc. (ADSK) shares could keep moving

Autodesk, Inc. (NASDAQ:ADSK) is the company behind AutoCAD and will report Q2 2009 earnings in August.  The stock has recovered from its low last month and now is up 15% in the past 3 months.  So does Autodesk have what it takes to keep moving to benefit shareholders?

On May 15th  Autodesk Inc reported Q1 quarterly profit thanks to strong growth in emerging markets and demand for its model-based three-dimensional products.

First-quarter income increased to $95 million, or 41 cents per share, from $83 million, or 24 cents a share, a year ago. Excluding special items, the company posted a profit of 50 cents per share in the latest quarter. Revenue rose 18% to $599 million.

The Street then rewarded ADSK and has sent shares up from $30 to $39 in a matter of weeks.  But can the good times keep going?

John Hughes, president of Quantum Capital Management thinks so, last week he stated that Autodesk (ADSK) trades at a significant discount to its intrinsic value.

The recent analyst take and target prices agree with Hughes' viewpoint:

For fiscal 2009, Autodesk now expects revenue of $2.45 billion to $2.50 billion and lifted its view for earnings per share to a range of $2.20 to $2.30.

Autodesk previously had said it expected 2009 profit before items of $2.15 to $2.25 on revenue of $2.43 billion and $2.48 billion.

"With a solid performance expected in our first-quarter results, a diversified product portfolio and diversified geographic mix, we feel confident about our overall business for the rest of fiscal 2009," the company said in a statement."

Autodesk added that it sees performance in the Americas as "consistent with the performance we experienced last quarter." 

Thanks to the developing world, Autodesk is going to continue to rack up the AutoCAD sales, this is one software application that can't be done via Google Apps.

Via INQUIRER.net -- Teddy Tiu, Autodesk Philippines country manager, noted that local companies that provide these types of services are thriving due to demand from both the local and overseas markets.

He mentioned the Middle East, in particular the city of Dubai in the United Arab Emirates, has been a major market due to massive infrastructure growth.

"Instead of subcontracting work, some local firms are the principal contractors themselves and earn as much as $25 million in contracts," Tiu said in an interview.

Locally, Tiu likewise noted a boom in the real estate and property market. Citing regional market figures from BCI Asia, he forecasted a 70-percent growth in the number of new office buildings under construction in 2008.

Also, the number of hotels under construction this year is forecasted to increase by as much as 80 percent from last year, making the Philippines one of the high growth areas among Southeast Asian countries.

Fellow Masters, Autodesk has corned the market with AutoCAD, should shares pullback, its a buy, even if they don't, its still a buy.

Disclaimer: No positions in ADSK.