What to Expect When Adobe Reports After the Close
Adobe is scheduled to release its fiscal third-quarter financial results after the markets close on Tuesday, and Wall Street is looking for solid growth on the top and bottom lines.
Adobe Inc. (NASDAQ: ADBE | ADBE Price Prediction) is scheduled to release its fiscal third-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for $1.97 in earning per share (EPS) and $2.82 billion in revenue. The same period from last year reportedly had $1.73 in EPS and $2.29 billion in revenue.
The company previously released guidance calling for EPS of $1.95 and total revenues of $2.80 billion for this quarter.
During the fiscal second quarter, revenue for the digital media segment was $1.89 billion, which represented 22% year-over-year growth. Creative revenue grew to $1.59 billion, and the document cloud division achieved revenue of $296 million.
At the same time, the company’s digital media annualized recurring revenue (ARR) grew to $7.47 billion exiting the quarter, a quarter-over-quarter increase of $406 million. Creative ARR grew to $6.55 billion, and document cloud ARR rose to $921 million. Separately, revenue for the digital experience segment was $784 million, representing 34% year-over-year growth.
Overall, Adobe has outperformed the broad markets, with its stock up about 25% year to date. In the past 52 weeks, the stock is only up about 5%.
A few analysts weighed in on Adobe ahead of the results:
- RBC’s Buy rating comes with a $320 price target.
- Stephens has a Buy rating and a $327 price target.
- Merrill Lynch has a Buy rating with a $323 price target.
- Credit Suisse rates it as Outperform with a $325 price target.
- Barclays has an Overweight rating and a $330 target price.
- Wedbush has a Neutral rating with a $290 target price.
Shares of Adobe were trading at $283.30 on Tuesday, in a 52-week range of $204.95 to $313.11. The consensus price target is $312.92.
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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.
