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Adobe (ADBE) to Post Q2 Earning: What's in the Offing?
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Adobe Inc. (ADBE - Free Report) is set to report second-quarter fiscal 2023 results on Jun 15.
For the fiscal second quarter, Adobe expects non-GAAP earnings between $3.75 and $3.80 per share. The Zacks Consensus Estimate for earnings is pegged at $3.78 per share, indicating growth of 12.8% from the year-ago fiscal quarter’s reported figure.
Adobe projects total revenues between $4.75 billion and $4.78 billion. The consensus mark for the same is pegged at $4.76 billion, implying growth of 8.6% from the year-ago fiscal quarter’s reported figure.
ADBE’s bottom line surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 2.58%.
Adobe’s strong focus on its Digital Media business is likely to have aided its performance in the fiscal second 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 second-quarter fiscal 2023, Adobe expects Digital Media revenues between $3.45-$3.47 billion.
The rising demand for Photoshop, Lightroom and Premier Pro and solid momentum across the Adobe Express platform might have contributed well to the performance of Creative Cloud.
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 second quarter.
Moreover, strength in Workfront might have been another positive.
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 expected between $1.21 billion and $1.23 billion.
Additionally, strong momentum in applications like Real-Time CDP and Adobe Journey Optimizer is likely to have been a tailwind.
However, the impacts of ongoing tensions between Russia and Ukraine 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.
Adobe has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ADBE currently has a Zacks Rank #2.
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.
Image: Shutterstock
Adobe (ADBE) to Post Q2 Earning: What's in the Offing?
Adobe Inc. (ADBE - Free Report) is set to report second-quarter fiscal 2023 results on Jun 15.
For the fiscal second quarter, Adobe expects non-GAAP earnings between $3.75 and $3.80 per share. The Zacks Consensus Estimate for earnings is pegged at $3.78 per share, indicating growth of 12.8% from the year-ago fiscal quarter’s reported figure.
Adobe projects total revenues between $4.75 billion and $4.78 billion. The consensus mark for the same is pegged at $4.76 billion, implying growth of 8.6% from the year-ago fiscal quarter’s reported figure.
ADBE’s bottom line surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 2.58%.
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 second 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 second-quarter fiscal 2023, Adobe expects Digital Media revenues between $3.45-$3.47 billion.
The rising demand for Photoshop, Lightroom and Premier Pro and solid momentum across the Adobe Express platform might have contributed well to the performance of Creative Cloud.
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 second quarter.
Moreover, strength in Workfront might have been another positive.
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 expected between $1.21 billion and $1.23 billion.
Additionally, strong momentum in applications like Real-Time CDP and Adobe Journey Optimizer is likely to have been a tailwind.
However, the impacts of ongoing tensions between Russia and Ukraine 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.
Adobe has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
ADBE currently has a Zacks Rank #2.
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) has an Earnings ESP of +1.42% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACN is scheduled to release third-quarter fiscal 2023 results on Jun 22. The Zacks Consensus Estimate for ACN’s earnings is pegged at $2.95 per share.
Accolade (ACCD - Free Report) has an Earnings ESP of +3.28% and currently carries a Zacks Rank #3.
ACCD is set to report first-quarter fiscal 2024 results on Jun 29. The Zacks Consensus Estimate for ACCD’s loss is pegged at 65 cents per share.
Jabil (JBL - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #3 at present.
JBL is expected to report third-quarter fiscal 2023 results on Jun 15. The Zacks Consensus Estimate for JBL’s earnings is pegged at $1.88 per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.