Autodesk (ADSK) stock jumped to an all-time high Friday after the pioneering maker of computer-aided design software late Thursday gave better-than-expected guidance for the current quarter and posted a fiscal Q2 that beat on the top and bottom lines.
The software maker said it had a record increase in cloud subscriptions for the quarter ended July 31, "as our customers and partners embrace a model that has greater flexibility and a better user experience," Autodesk CEO Carl Bass said in the company's earnings release.
Autodesk stock leapt 8.1% to 68.87 in the stock market today, hitting a record high.
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The company is transitioning to selling its software as a service -- on demand via the internet cloud -- instead of the formerly standard way of selling software via perpetual licenses, as cloud computing rising to the fore. The company's software is used by customers such as construction, engineering and manufacturing companies to design products and simulate the real-world performance of those products.
That transition "is moving in the right direction," William Blair analyst Anil Doradla wrote in a research note Friday, in which he maintained his outperform rating on Autodesk stock.
Pacific Crest maintained its overweight rating on Autodesk stock, along with its 81 price target.
"Autodesk's move to the cloud should give the company more subscription revenue, which should ultimately provide it better visibility, more consistency in its financial results and very compelling cash flows," Pacific Crest analysts wrote in a research note.
Autodesk stock is now extended from its 62.52 buy point, out of a cup-with-handle base, touched on Aug. 15.
