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Adobe (ADBE) to Post Q4 Earnings: What's in the Offing?
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Adobe Inc. (ADBE - Free Report) is set to report fourth-quarter fiscal 2022 results on Dec 15.
For the fiscal fourth quarter, Adobe expects non-GAAP earnings of $3.50 per share. The Zacks Consensus Estimate for earnings is also pegged at $3.50 per share, indicating growth of 9.4% from the year-ago fiscal quarter’s reported figure.
Adobe projects total revenues of $4.52 billion. The consensus mark for the same is pegged at $4.52 billion, implying growth of 10.03% from the year-ago fiscal quarter’s reported figure.
ADBE’s bottom line surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average surprise being 1.29%.
Adobe’s strong focus on its Digital Media business is likely to have aided its performance in the fiscal fourth quarter.
Growing demand for ADBE’s Digital Media Solutions, along with solid momentum across Creative Cloud and Document Cloud, is expected to have benefited the Digital Media business in the to-be-reported fiscal quarter. For fourth-quarter fiscal 2022, Adobe expects revenue growth of 10% in Digital Media from the last fiscal year’s reading.
Rising momentum across the new platform called Creative Cloud Express and strength across Substance 3D and the new 3D Modeler are expected to have aided growth in the Creative Cloud revenues in the fiscal quarter under review.
Further, solid enterprise adoption of Acrobat and Adobe Sign is expected to have driven growth in Document Cloud revenues in the to-be-reported fiscal quarter.
Apart from Digital Media, strong momentum across Adobe Experience Cloud on the heels of the rising uptake of Adobe Marketing Cloud, Adobe Analytics Cloud and Adobe Advertising Cloud is expected to have boosted the business in the fiscal fourth quarter under review.
Moreover, cross-cloud integrations, product innovations and the growing adoption of Adobe Experience Manager might have been other positives.
ADBE expects the Digital Experience segment’s revenues to grow 13% from the year-ago fiscal quarter’s actuals. Also, Digital Experience subscription revenues are likely to increase 13% from the prior fiscal year’s quarterly level.
Additionally, increasing demand for data and insights, content and personalization, customer journey management, commerce and advertising is expected to have accelerated revenues in the fiscal fourth quarter.
However, the ongoing tensions between Russia and Ukraine, due to which Adobe halted its all-new sales of products and services in Russia and Belarus, are expected to have continued acting as headwinds during the fiscal quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Adobe this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Adobe has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks worth considering that, per our model, have the right combination of elements to beat on earnings this reporting cycle.
The Zacks Consensus Estimate for ACN’s first-quarter fiscal 2023 earnings is pegged at $2.91 per share, indicating a 4.7% rise from the year-ago quarter’s reported number.
ABB has an Earnings ESP of +1.79% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for ABB’s fourth-quarter 2022 earnings is pegged at 37 cents per share, suggesting an increase of 8.8% from the prior-year reported figure.
Appolo Global Management (APO - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for APO’s fourth-quarter 2022 earnings is pegged at $1.48 per share, suggesting an increase of 40.9% from the prior-year quarter’s reported figure.
Image: Bigstock
Adobe (ADBE) to Post Q4 Earnings: What's in the Offing?
Adobe Inc. (ADBE - Free Report) is set to report fourth-quarter fiscal 2022 results on Dec 15.
For the fiscal fourth quarter, Adobe expects non-GAAP earnings of $3.50 per share. The Zacks Consensus Estimate for earnings is also pegged at $3.50 per share, indicating growth of 9.4% from the year-ago fiscal quarter’s reported figure.
Adobe projects total revenues of $4.52 billion. The consensus mark for the same is pegged at $4.52 billion, implying growth of 10.03% from the year-ago fiscal quarter’s reported figure.
ADBE’s bottom line surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average surprise being 1.29%.
Adobe Inc. Price and EPS Surprise
Adobe Inc. price-eps-surprise | Adobe Inc. Quote
Factors to Consider
Adobe’s strong focus on its Digital Media business is likely to have aided its performance in the fiscal fourth quarter.
Growing demand for ADBE’s Digital Media Solutions, along with solid momentum across Creative Cloud and Document Cloud, is expected to have benefited the Digital Media business in the to-be-reported fiscal quarter. For fourth-quarter fiscal 2022, Adobe expects revenue growth of 10% in Digital Media from the last fiscal year’s reading.
Rising momentum across the new platform called Creative Cloud Express and strength across Substance 3D and the new 3D Modeler are expected to have aided growth in the Creative Cloud revenues in the fiscal quarter under review.
Further, solid enterprise adoption of Acrobat and Adobe Sign is expected to have driven growth in Document Cloud revenues in the to-be-reported fiscal quarter.
Apart from Digital Media, strong momentum across Adobe Experience Cloud on the heels of the rising uptake of Adobe Marketing Cloud, Adobe Analytics Cloud and Adobe Advertising Cloud is expected to have boosted the business in the fiscal fourth quarter under review.
Moreover, cross-cloud integrations, product innovations and the growing adoption of Adobe Experience Manager might have been other positives.
ADBE expects the Digital Experience segment’s revenues to grow 13% from the year-ago fiscal quarter’s actuals. Also, Digital Experience subscription revenues are likely to increase 13% from the prior fiscal year’s quarterly level.
Additionally, increasing demand for data and insights, content and personalization, customer journey management, commerce and advertising is expected to have accelerated revenues in the fiscal fourth quarter.
However, the ongoing tensions between Russia and Ukraine, due to which Adobe halted its all-new sales of products and services in Russia and Belarus, are expected to have continued acting as headwinds during the fiscal quarter to be reported.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Adobe this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Adobe has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks worth considering that, per our model, have the right combination of elements to beat on earnings this reporting cycle.
Accenture (ACN - Free Report) currently has a Zacks Rank #3 and an Earnings ESP of +0.38%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ACN’s first-quarter fiscal 2023 earnings is pegged at $2.91 per share, indicating a 4.7% rise from the year-ago quarter’s reported number.
ABB has an Earnings ESP of +1.79% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for ABB’s fourth-quarter 2022 earnings is pegged at 37 cents per share, suggesting an increase of 8.8% from the prior-year reported figure.
Appolo Global Management (APO - Free Report) has an Earnings ESP of +5.26% and a Zacks Rank #3 at present.
The Zacks Consensus Estimate for APO’s fourth-quarter 2022 earnings is pegged at $1.48 per share, suggesting an increase of 40.9% from the prior-year quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.