Creative software maker Adobe (NASDAQ:ADBE) will be reporting earnings tomorrow afternoon. Here’s what to expect.
Adobe met analysts’ revenue expectations last quarter, reporting revenues of $5.31 billion, up 10.2% year on year. It was a weaker quarter for the company, with a miss of analysts’ billings estimates and full-year revenue guidance missing 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 9.9% year on year to $5.37 billion, in line with the 10.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.54 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 missed Wall Street’s revenue estimates twice over the last two years.
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, investors in the segment have had steady hands going into earnings, with share prices flat over the last month. Adobe is up 7.2% during the same time and is heading into earnings with an average analyst price target of $610.2 (compared to the current share price of $574).
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