Adobe (ADBE) To Report Earnings Tomorrow: Here Is What To Expect

Adam Hejl /
2023/03/14 4:33 am EDT
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Creative software maker Adobe (NASDAQ:ADBE) will be announcing earnings results tomorrow after market close. Here's what you need to know.

Last quarter Adobe reported revenues of $4.53 billion, up 10.1% year on year, in line with analyst expectations. It was a weaker quarter for the company, with full year guidance missing analysts' expectations and slow revenue growth.

Is Adobe buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Adobe's revenue to grow 8.51% year on year to $4.62 billion, in line with the 9.14% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.68 per share.

Adobe Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Adobe's peers in the vertical software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. Toast delivered top-line growth of 49.3% year on year, beating analyst estimates by 2.1% and Upstart reported revenue decline of 51.8% year on year, exceeding estimates by 10.6%. Toast traded down 6.2% on the results, Upstart was up 0.89%. Read our full analysis of Toast's results here and Upstart's results here.

The whole sector has been facing a sell-off since late last year, with stocks down on average 9.95% over the last month. Adobe is down 12.9% during the same time, and is heading into the earnings with analyst price target of $391.46, compared to share price of $326.76.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.