What Analysts Are Saying About Adobe After Earnings

June 24, 2016 by Chris Lange

Adobe Systems Inc. (NASDAQ: ADBE) released fiscal second-quarter financial results after the markets closed on Tuesday. As a result analysts piled into the company after it had a positive report, although views were somewhat mixed.

24/7 Wall St. has compiled some highlights from the earnings report as well as what some key analysts are saying after the fact.

The company had $0.71 in earnings per share (EPS) on a record $1.4 billion in revenue versus consensus estimates from Thomson Reuters that called for $0.68 in EPS on $1.40 billion in revenue. The same period from last year had $0.48 in EPS on $1.16 billion in revenue.

During this quarter, the company reported that deferred revenue grew to $1.68 billion.

The Digital Media segment revenue grew by 26% from last year to a record $943 million, with Creative revenue growing 37% to a record $755 million. Strong Creative Cloud and Document Cloud adoption helped drive Digital Media Annualized Recurring Revenue (ARR) to $3.41 billion exiting the quarter, a quarter-over-quarter increase of $285 million.

Adobe Marketing Cloud achieved record revenue of $385 million that represents year-over-year growth of 18%.

The company issued guidance for the fiscal third-quarter, expecting EPS in the range of $0.69 to $0.79 and revenue in the range of $1.42 billion to $1.47 billion. There are consensus estimates calling for $0.71 in EPS on $1.47 billion in revenue for the coming quarter.

After the earnings were released a few analysts poured into the stock:

  • Cowen initiated coverage with an Outperform rating
  • Oppenheimer reiterated a Market Perform rating
  • Sanford Bernstein reiterated an Outperform rating with a $114 price target
  • Credit Suisse reiterated a Neutral rating with a $105 price target
  • Goldman Sachs reiterated a Neutral rating with a $105 price target
  • JPMorgan reiterated an Overweight rating with a $110 price target
  • RBC Capital reiterated an Outperform rating with a $104 price target
  • Citigroup has a Buy rating with a $114 price target
  • Deutsche Bank reiterated a Buy rating with a $120 price target
  • Canaccord Genuity reiterated a Buy rating with a $120 price target
  • Rosenblatt Securities has a Buy rating with a $120 price target

Shares of Adobe were last trading down 2.6% at $93.71, with a consensus analyst price target of $111.57 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.