Autodesk (ADSK) shares plunged 5.89% in pre-market trading on Friday.
The sell-off followed the company's release of first-quarter results that beat analyst expectations but came with full-year guidance that only modestly exceeded consensus estimates, disappointing investors who had priced in higher expectations. Autodesk reported adjusted earnings per share of $2.99, surpassing the $2.84 estimate, and revenue of $1.93 billion, above the $1.89 billion forecast.
Simultaneously, the company announced a $3.6 billion all-cash acquisition of maintenance software firm MaintainX, to be funded through cash and debt, raising concerns about increased financial leverage. The combination of underwhelming forward outlook and the significant acquisition triggered a classic "sell-the-news" reaction, as the stock had gained in the prior session ahead of the report.