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Adobe (ADBE) Reports Q1 Earnings: What Key Metrics Have to Say
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For the quarter ended February 2023, Adobe Systems (ADBE - Free Report) reported revenue of $4.66 billion, up 9.2% over the same period last year. EPS came in at $3.80, compared to $3.37 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4.61 billion, representing a surprise of +0.88%. The company delivered an EPS surprise of +3.83%, with the consensus EPS estimate being $3.66.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Adobe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Business Unit- Digital Media-Creative ARR (Annualized Recurring): $11.28 billion compared to the $11.37 billion average estimate based on four analysts.
Business Unit- Digital Media-Total Digital Media ARR (Annual): $13.67 billion versus the four-analyst average estimate of $13.81 billion.
Business Unit- Digital Media-Document Services ARR (Annual): $2.39 billion versus $2.45 billion estimated by three analysts on average.
Revenue-Publishing and Advertising: $84 million versus $83.74 million estimated by seven analysts on average.
Revenue-Digital Media: $3.40 billion compared to the $3.36 billion average estimate based on seven analysts. The reported number represents a change of +9.2% year over year.
Revenue-Digital Media-Document Cloud Revenue: $634 million versus the five-analyst average estimate of $630.46 million. The reported number represents a year-over-year change of +12.8%.
Revenue-Digital Media-Creative: $2.76 billion versus the five-analyst average estimate of $2.73 billion. The reported number represents a year-over-year change of +10.4%.
Revenue-Services and support: $162 million versus the four-analyst average estimate of $163.55 million. The reported number represents a year-over-year change of +1.9%.
Revenue-Subscription-Digital Experience: $1.04 billion compared to the $1.03 billion average estimate based on three analysts.
Net revenues-Subscription: $4.37 billion versus the three-analyst average estimate of $4.30 billion. The reported number represents a year-over-year change of +10.5%.
Net revenues-Products: $120 million versus $140.80 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -17.2% change.
Shares of Adobe have returned -11.8% over the past month versus the Zacks S&P 500 composite's -5.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could perform in line with the broader market in the near term.
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Adobe (ADBE) Reports Q1 Earnings: What Key Metrics Have to Say
For the quarter ended February 2023, Adobe Systems (ADBE - Free Report) reported revenue of $4.66 billion, up 9.2% over the same period last year. EPS came in at $3.80, compared to $3.37 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4.61 billion, representing a surprise of +0.88%. The company delivered an EPS surprise of +3.83%, with the consensus EPS estimate being $3.66.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Adobe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
View all Key Company Metrics for Adobe here>>>
Shares of Adobe have returned -11.8% over the past month versus the Zacks S&P 500 composite's -5.1% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could perform in line with the broader market in the near term.