What To Expect From Adobe’s (ADBE) Q4 Earnings

Adam Hejl /
2022/12/14 4:36 am EST

Creative software maker Adobe (NASDAQ:ADBE) will be reporting earnings tomorrow after market hours. Here's what to expect.

Last quarter Adobe reported revenues of $4.43 billion, up 12.6% year on year, inline with analyst expectations. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter 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 10.1% year on year to $4.52 billion, slowing down from the 20% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.50 per share.

Adobe Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing three upwards revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.39%.

Looking at Adobe's peers in the vertical software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Matterport delivered top-line growth of 37.3% year on year, beating analyst estimates by 5.69% and Unity reported revenues up 12.7% year on year, missing analyst estimates by 0.85%. Matterport traded up 9.09% on the results, Unity was flat on the results. Read our full analysis of Matterport's results here and Unity's results here.

Investors in the software segment have had steady hands going into the earnings, with the stocks up on average 1.13% over the last month. Adobe is up 1.62% during the same time, and is heading into the earnings with analyst price target of $371.17, compared to share price of $342.00.

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