What to Expect From Adobe Earnings

June 21, 2016 by Chris Lange

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.

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.

Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE

Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here
you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.


Click here
to match with up to 3 financial pros who would be excited to help you make financial decisions.