NEW YORK (AP) -- Shares of Autodesk Inc. sank Friday after the design software company posted disappointing first-quarter results and lowered its forecasts for the year.
THE SPARK: Autodesk reported its results after the market closed on Thursday. The company said its adjusted income fell to 42 cents per share and revenue fell to about $570 million. That was 3 cents per share and $13 million less than analysts expected, according to FactSet.
The company said the shaky global economy hurt its results, and April was particularly weak.
THE BIG PICTURE: The San Rafael, Calif., company makes design software used by engineers, architects and digital artists, among others. Autodesk now expects lower net income growth for the year, and said revenue will grow about 3 percent instead of 6 percent. That implies a total of $2.38 billion instead of $2.45 billion.
Analysts were forecasting $2.44 billion in revenue on average.
THE ANALYSIS: Jefferies & Co. analyst Ross MacMillan said the results were not surprising considering other reports from the industry.
"Demand conditions at peers have also been weak and we have seen others guide revenues down too," mostly because of global economic issues, he said. MacMillan rates Autodesk shares "Buy."
Stifel Nicolaus analyst Blair Abernethy said the company's end markets were weak, and high interest expenses and changes to its sales organization also affected its results. He has a "Hold" rating on the shares.
SHARE ACTION: Autodesk stock fell $4.06, or 10.2 percent, to $35.72 in morning trading. The shares had gained 12.5 percent in 2013 as of Thursday's close.
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