Autodesk, Inc. (Nasdaq: ADSK) is trading lower today as Barron's notes that their recent foray's into project managementsoftware will bring profits, sales, and prospects to the company once known for being computer design tool specific.
The have created a new discipline called Buiding Information Modeling (BIM). BIM integrates several aspects of the design and construction process, bringing all elements together and producing a 3-D rendering of the project from start to finish.
Autodesk received a $6 million contract from the U.S. Army Corps of Engineers earlier today, a mother lode when compared to their typical contract from $10,000 per year. The contract allows USACE "full access to the latest innovative Building Information Modeling (BIM) software tools and professional services to support its national defense mission."
Furthermore, BIM could help reduce wasted budgets to design error and overruns, which typically consume about 40% of a project's total budget.
Though bigger projects are unpredictable, contractors in the U.S., U.K., and China are beginning to more fully embrace the software as projects have become fewer and further between lately, putting a crimp on profits for contractors.
Pacific Crest Securities notes that the company recently inked one of their largest-ever deal with a major engineering firm, and rates the stock at an Outperform with a price target of $45.