Creative software giant Adobe (NASDAQ:ADBE) will be reporting results this Thursday after market close. Here’s what you need to know.
Adobe beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $5.87 billion, up 10.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ billings estimates and full-year EPS guidance slightly topping analysts’ expectations.
Is Adobe a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Adobe’s revenue to grow 9.2% year on year to $5.90 billion, slowing from the 10.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $5.18 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Adobe has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 0.8% on average.
With Adobe being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for vertical software stocks. However, there has been positive investor sentiment in the segment, with share prices up 10.3% on average over the last month. Adobe is up 6.8% during the same time and is heading into earnings with an average analyst price target of $473.39 (compared to the current share price of $356.25).
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