What to Expect From Adobe Earnings
Adobe Systems is scheduled to report its fiscal second-quarter financial results after the markets close on Tuesday.
Adobe Systems Inc. (NASDAQ: ADBE) is scheduled to report its fiscal second-quarter financial results after the markets close on Tuesday. The consensus estimates from Thomson Reuters are $0.68 in earnings per share (EPS) on $1.40 billion in revenue. In the same period of last year, the company posted EPS of $0.48 and $1.16 billion in revenue.
This is a high-profile old-school software company that has been posting outstanding earnings. Adobe is also reasonably safe route for investors looking to own a company with Marketing Automation product, which has become huge.
The company’s exceptional performance in the first quarter is an indicator of the strong momentum that it is seeing across cloud businesses as Adobe drives the experience economy.
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In the fiscal first quarter, the company reported a record quarter, with 25% year-over-year revenue growth. Strong Cloud adoption drove record Creative and Marketing Cloud revenue in the first quarter, and better-than-expected Digital Media Annual Recurring Revenues. Based on strong first-quarter results and business momentum, Adobe increased its annual revenue and earnings targets for the year.
A few analysts weighed in on Adobe during this quarter:
- Rosenblatt Securities reiterated a Buy rating with a $112 price target.
- Goldman Sachs reiterated a Neutral rating with a $100 price target.
- Barclays has a $75 price target.
- Dougherty has a Buy rating with a $122 price target.
So far in 2016, Adobe has performed more or less in line with the broad markets, with the stock up 4%. Over the past year, the stock is up a whopping 23%.
Shares of Adobe were trading up 0.7% at $98.65 on Tuesday, with a consensus analyst price target of $110.38 and a 52-week trading range of $71.27 to $100.56.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
