Core Insights - AutoDesk (ADSK) is set to release its second-quarter 2025 results on August 28, with revenue expectations of $1.73 billion, reflecting a year-over-year growth of 14.65% [1] - The consensus estimate for earnings per share is $2.44, unchanged over the past 30 days, compared to $2.15 in the same quarter last year [1] - AutoDesk has consistently beaten earnings estimates in the past four quarters, with an average surprise of 6.22% [1] Financial Performance - AutoDesk entered the second quarter of fiscal 2026 with strong momentum, reporting a 15% revenue growth to $1.63 billion in the first quarter [3] - The Architecture, Engineering, Construction and Operations segment is expected to be the primary growth driver, supported by the adoption of Autodesk Construction Cloud and enterprise business agreements [4] - The Manufacturing portfolio is anticipated to benefit from demand for Fusion and the Product Design and Manufacturing Collection, with AI-driven design automation providing additional support [5] Geographic Insights - The Americas and EMEA regions are expected to lead in expansion, showing sustained double-digit growth, while Asia-Pacific may lag due to Japan's transition and trade dynamics with China and Korea [6] Challenges - Potential headwinds include heightened policy and geopolitical uncertainty that could delay project spending, as well as currency fluctuations [7] - Restructuring and sales optimization actions from the previous quarter may cause short-term disruptions [7] Earnings Prediction - Current analysis does not predict a definitive earnings beat for AutoDesk, as it holds a Zacks Rank of 3 and an Earnings ESP of 0.00% [8]

Core Insights - Autodesk is set to release its earnings on August 28, 2025, with a historical positive bias in stock performance post-earnings, achieving a positive one-day return in 53% of instances over the past five years [2][7] - Analysts project adjusted earnings of $2.45 per share on revenue of $1.72 billion, an increase from $2.15 per share and $1.5 billion in revenue in the same quarter last year [3] - Autodesk has a market value of $61 billion, generating $6.3 billion in revenue, with an operating profit of $1.4 billion and net income of $1.0 billion over the past twelve months [4] Historical Performance - Over the last five years, Autodesk tracked 19 earnings events, resulting in 10 positive and 9 negative one-day returns, with a median positive return of 1.4% and a median negative return of -6.9% [7] - The likelihood of positive returns improves slightly to 55% when focusing on the last three years [7] Trading Strategies - Event-driven traders can analyze historical odds of positive versus negative moves to establish positions ahead of the earnings announcement [6] - Post-earnings, traders should study the relationship between immediate earnings reactions and medium-term stock performance to inform trading decisions [6][8]

Core Viewpoint - Analysts expect Autodesk (ADSK) to report quarterly earnings of $2.44 per share, reflecting a year-over-year increase of 13.5%, with revenues projected at $1.73 billion, up 14.7% from the previous year [1] Group 1: Earnings and Revenue Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' forecasts [1] - Analysts predict 'Net Revenue- Maintenance' to reach $9.26 million, a decrease of 15.8% from the prior-year quarter [4] - 'Net Revenue- Other' is expected to be $89.56 million, showing an increase of 4.1% year-over-year [4] - 'Net Revenue- Subscription' is projected at $1.63 billion, reflecting a year-over-year increase of 15.6% [4] Group 2: Total Revenue and Product Family Estimates - Total subscription and maintenance revenue is estimated to be $1.64 billion, indicating a 15.3% increase from the prior-year quarter [5] - 'Net Revenue by Product Family- M&E (Media and Entertainment)' is expected to reach $97.34 million, a rise of 26.4% from the previous year [5] - 'Net Revenue by Product Family- Other' is forecasted at $39.76 million, showing a year-over-year increase of 32.5% [6] - 'Net Revenue by Product Family- AECO (Architecture, Engineering, Construction and Operations)' is projected to be $821.80 million, reflecting a 15.3% increase [6] - 'Net Revenue by Product Family- MFG (Manufacturing)' is expected to be $341.65 million, indicating a 15.4% increase [7] - 'Net Revenue by Product Family- AutoCAD and AutoCAD LT' is estimated at $416.04 million, reflecting a 7% increase from the prior-year quarter [7] Group 3: Billings and Market Performance - Analysts predict 'Billings' to be $1.57 billion, compared to $1.24 billion reported in the same quarter of the previous year [8] - Autodesk shares have decreased by 4.3% in the past month, contrasting with the Zacks S&P 500 composite's increase of 2.7% [8] - Autodesk holds a Zacks Rank 2 (Buy), indicating expectations of outperforming the overall market performance in the near term [8]

Core Insights - Autodesk has launched a new pricing model for Autodesk Flow Studio, introducing a free tier and reducing the Lite plan price by 50% from $20 to $10, aiming to make AI-powered VFX and animation tools more accessible to a wider audience [1][9] - The introduction of the free tier and flexible pricing reflects Autodesk's commitment to a creator-first future, enabling more artists and content creators to utilize advanced AI tools without significant financial barriers [7][9] - The new tiered model includes Free, Standard, Lite, Pro, and Enterprise options, catering to users from beginners to professional studios, with core tools available in the Free tier and advanced features reserved for paid tiers [8][9] Product Features - Autodesk Flow Studio automates complex VFX tasks such as motion capture and character animation, allowing creators to focus on storytelling rather than technical setups [5][6] - Users can export AI-generated assets to other software like Maya, Blender, or Unreal Engine, enhancing workflow efficiency and creative possibilities [6] - The Pro tier is included in Autodesk's Media & Entertainment Collection at no additional cost, providing existing customers a low-risk opportunity to explore AI-powered workflows [9] Market Positioning - The launch of Autodesk Flow Studio as a freemium product is part of Autodesk's strategy to integrate advanced AI capabilities into its ecosystem, ensuring a consistent and scalable user experience [9] - The initiative aims to democratize high-quality content creation, allowing more creators to experiment and bring their ideas to life without the need for extensive resources [6][9] - Autodesk's approach emphasizes the importance of maintaining creative processes while adopting new technologies, aligning with the evolving landscape of AI in media and entertainment [9]

Core Insights - Five9 (FIVN) and Autodesk (ADSK) are both considered for investors looking for undervalued stocks in the Internet - Software sector [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] Valuation Metrics - FIVN has a forward P/E ratio of 9.01, significantly lower than ADSK's forward P/E of 31.39, suggesting FIVN may be undervalued [5] - The PEG ratio for FIVN is 0.64, while ADSK's PEG ratio is 1.99, indicating FIVN's expected earnings growth is more favorable relative to its price [5] - FIVN's P/B ratio stands at 2.7, compared to ADSK's P/B of 24.74, further supporting the notion that FIVN is undervalued [6] Value Grades - Based on various valuation metrics, FIVN holds a Value grade of B, while ADSK has a Value grade of F, highlighting FIVN as the superior value option [6][7]

Summary of Zhongwang Software Conference Call Company Overview - **Company**: Zhongwang Software - **Industry**: CAD Software Development Key Points and Arguments 1. **Intellectual Property Defense**: Zhongwang Software asserts that its CAD products do not infringe on third-party codes and has applied for dozens of core technology patents. The company has maintained a strict source code management system for over ten years and is confident in resolving misunderstandings with Autodesk through communication or legal means [2][3][4]. 2. **Litigation Response Team**: A specialized task force has been established, comprising executives, R&D, legal, and international lawyers, to actively respond to the lawsuit. The company is open to a code comparison in a fair environment to clarify facts and seek mutually beneficial solutions [2][3][5]. 3. **Sales Continuity**: During the litigation, Zhongwang's CAD products can continue to be sold, and partnerships with distributors and ecosystem partners remain unaffected. The company believes that honest communication and legal means are effective methods for resolving disputes [2][6][9]. 4. **Market Impact**: While sales are not restricted, the lawsuit may affect customer confidence. The company has initiated marketing activities to communicate with customers and mitigate negative impacts. Domestic market recognition is high, and overseas distributors are generally accepting of the situation [2][10]. 5. **Differentiation Strategy**: Zhongwang Software emphasizes a market-oriented and international strategy, adhering to international legal rules. The company has increased R&D investment and is committed to a differentiation strategy to minimize the likelihood of similar disputes in the future [4][11]. 6. **Long-term Outlook**: The company believes that through open communication and legal means, the dispute can be resolved effectively. They are confident that the absence of large-scale code plagiarism will lead to a smoother resolution [6][10]. 7. **Potential Future Litigation**: Although Autodesk has only filed a lawsuit regarding the 2D CAD product, Zhongwang does not rule out the possibility of future litigation concerning 3D CAD products. The company has taken measures to strengthen intellectual property protection [4][11]. 8. **Sales and Financial Stability**: Zhongwang Software is aware of the potential for competitors to use litigation to undermine sales and financial health. However, they maintain that their products are distinct from Autodesk's and have no intention of infringing on third-party intellectual property [12][13]. Additional Important Content - **Customer Communication**: The company is actively engaging with customers to alleviate concerns stemming from the lawsuit, emphasizing the importance of maintaining trust and transparency [9][10]. - **Legal Preparedness**: Zhongwang Software is prepared for a potentially lengthy legal process, drawing on past experiences with similar lawsuits, and is committed to protecting its rights and interests [10][12].

Core Viewpoint - Zhongwang Software is facing a lawsuit from Autodesk for copyright infringement, trade secret violations, and breach of existing agreements, with Autodesk seeking injunctions and damages [2]. Group 1: Lawsuit Details - Autodesk has filed a lawsuit in the U.S. District Court for the Northern District of California against Zhongwang Software and related parties [2]. - The lawsuit includes claims of copyright infringement, trade secret violations, and breach of existing agreements [2]. - Autodesk's requests in the lawsuit include an injunction against Zhongwang Software and related parties, as well as compensation for damages [2]. Group 2: Company Response - Zhongwang Software does not acknowledge Autodesk's claims and intends to take strong measures to defend itself [2]. - The company emphasizes its commitment to protecting the interests of itself and its shareholders [2]. - Zhongwang Software has a strong focus on research and innovation, with all its developed software possessing independent intellectual property rights [8]. Group 3: Company Background - Zhongwang Software has been dedicated to industrial design software for over 20 years, establishing a core technology and product matrix centered on independent 2D CAD, 3D CAD/CAM, and multi-disciplinary simulations [8]. - The company is currently unable to estimate the financial impact of the lawsuit, as the specific amount involved has not been clarified and the case has not yet gone to trial [8].

Core Viewpoint - The first design-oriented industrial software company listed on the A-share market, Zhongwang Software, is being sued by global software giant Autodesk for copyright infringement and other claims [2][3]. Group 1: Legal Proceedings - Autodesk has filed a lawsuit against Zhongwang Software and related parties in the U.S. District Court for the Northern District of California, alleging copyright infringement, misappropriation of trade secrets, and breach of existing agreements [2][3]. - Autodesk is seeking preliminary and permanent injunctions to prevent Zhongwang Software and related parties from continuing the alleged infringing activities, as well as compensation for damages incurred due to the alleged infringement and breach [3][5]. - The lawsuit involves multiple defendants, including Zhongwang Software, ZWCAD Design Co., Ltd. (which has been dissolved), HK ZWCAD Software Ltd., and ZWSOFT America Inc. [3]. Group 2: Company Response - Zhongwang Software has stated that it does not acknowledge Autodesk's claims and will actively respond to the lawsuit [2][4]. - The company emphasizes its commitment to research and innovation, asserting that all its developed software possesses independent intellectual property rights [4]. - Zhongwang Software has a history of legal disputes with Autodesk, including a previous lawsuit in 2014 regarding the alleged misuse of AutoCAD source code, which was settled in 2015 [5].

Core Viewpoint - The first design-oriented industrial software company listed on the A-share market, Zhongwang Software, is being sued by global software giant Autodesk for copyright infringement and other claims [1][2]. Group 1: Legal Proceedings - Autodesk has filed a lawsuit against Zhongwang Software and related parties in the U.S. District Court for the Northern District of California, alleging copyright infringement, misappropriation of trade secrets, and breach of existing agreements [1][2]. - The lawsuit requests preliminary and permanent injunctions against Zhongwang Software and related parties, compensation for damages, and the destruction of infringing copies related to ZWCAD [2][3]. - Zhongwang Software has stated that it does not recognize Autodesk's claims and will actively respond to the lawsuit, although the specific amount involved in the case has not been clarified yet [1][3]. Group 2: Company Background - Zhongwang Software has been focused on industrial design software for over 20 years, developing a range of products including its own 2D and 3D CAD/CAM software, and has established a core technology and product matrix [3]. - The company emphasizes its commitment to research and innovation, asserting that all its developed software possesses independent intellectual property rights [3]. Group 3: Previous Legal Issues - This is not the first legal dispute between Autodesk and Zhongwang Software; Autodesk previously filed lawsuits in 2014 regarding alleged theft of AutoCAD source code used in the development of ZWCAD+ [4]. - A settlement was reached in November 2015 between Zhongwang Software and Autodesk regarding the earlier lawsuits [4].

Core Insights - The GARP (Growth at a Reasonable Price) strategy combines value and growth investing, focusing on undervalued stocks with solid growth prospects [1][2][7] GARP Strategy Overview - GARP investing aims to provide an ideal investment by utilizing features from both value and growth investing, targeting stocks priced below market value with strong cash flow and earnings potential [3][4] - Ideal growth rates for GARP investors are between 10% and 20%, focusing on stable growth rather than super-normal rates [3] Screening Parameters - Stocks selected under the GARP strategy must have a Zacks Rank of 1 (Strong Buy) or 2 (Buy), with last 5-year EPS and projected 3-5 year EPS growth rates between 10% and 25% [6] - A return on equity (ROE) greater than the industry average and P/E and P/B ratios less than the industry average are also key criteria [6] Promising GARP Stocks - GE Aerospace is experiencing strong demand for commercial engines and expects organic revenue growth in the low-double-digit range for 2025, with a year-to-date stock surge of 62.1% [9][10] - Autodesk is benefiting from new business growth and strong demand for its cloud-based products, with a year-to-date return of 3.7% [12][13] - Adobe's tools are gaining traction, with over 700 million monthly active users, although the stock has declined 16.6% year-to-date [14][16] - Sprouts Farmers Market is well-positioned in the natural and organic food market, planning to open at least 35 new stores in 2025, with a year-to-date return of 23.5% [17][18][19]