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Adobe (ADBE) to Report Q3 Earnings: What's in the Offing?
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Adobe Inc. (ADBE - Free Report) is set to report third-quarter fiscal 2023 results on Sep 14.
For the fiscal third quarter, the company expects non-GAAP earnings of $3.95-$4.00 per share. The Zacks Consensus Estimate for earnings is pegged at $3.97 per share, indicating growth of 16.8% from the year-ago reported figure.
Adobe projects total revenues between $4.83 and $4.87 billion. The consensus mark for the same is pegged at $4.85 billion, implying growth of 9.5% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average earnings surprise being 3.06%.
Solid momentum across the Digital Media and Digital Experience segments are likely to have driven top-line growth for the company in the to-be-reported quarter.
Robust Creative Cloud and Document Cloud are expected to have contributed well to the performance of the Digital Media segment in the fiscal third quarter. Adobe expects Digital Media revenues between $3.55 and $3.57 billion. The Zacks Consensus Estimate for the same is pegged at $3.6 billion, indicating growth of 10.2% year over year.
Adobe’s growing momentum in generative AI on the back of Firefly might have remained a major positive. The integration of generative AI capabilities into Photoshop, Illustrator and Adobe Express are likely to have contributed well to the performance of Creative Cloud.
The growing adoption of Premiere Pro, solid momentum across the Adobe Express platform and benefits from the Frame.io acquisition are expected to have accelerated growth in Creative revenues in the quarter under review.
The consensus mark for Creative Cloud revenues stands at $2.89 billion, reflecting growth of 10.1% from the year-ago quarter.
Solid momentum across the Document Cloud enterprise business and strength in the Acrobat ecosystem are anticipated to have contributed well to Document Cloud revenues. The growing demand for PDF collaboration services might have been a tailwind.
The consensus mark for Document Cloud revenues stands at $671 million, reflecting growth of 10.5% from the year-ago quarter.
Growing Adobe Experience Cloud subscriptions on the heels of the rising adoption of Adobe Marketing Cloud, Adobe Analytics Cloud and Adobe Advertising Cloud is expected to have benefited Adobe’s Digital Experience segment in the quarter under review.
Its solid momentum in Real-Time CDP, Adobe Product Analytics, Content Supply Chain solutions and Adobe Mis Modeler is likely to have contributed well. The growing demand for Workfront might have been a positive
The company anticipates Digital Experience revenues between $1.21 and $1.23 billion. The Zacks Consensus Estimate for the same is pegged at $1.22 billion, indicating growth of 8.9% year over year.
However, the ongoing tension between Russia and Ukraine is expected to have remained a major headwind in the fiscal third quarter.
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. That is not the case here.
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.
The company currently carries a Zacks Rank #2.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Accenture is scheduled to release fourth-quarter fiscal 2023 results on Sep 28. The Zacks Consensus Estimate for ACN’s earnings per share is pegged at $2.64.
FedEx (FDX - Free Report) has an Earnings ESP of +4.6% and currently carries a Zacks Rank #2.
FedEx is set to report first-quarter fiscal 2024 results on Sep 20. The Zacks Consensus Estimate for FDX’s earnings is pinned at $3.68 per share.
Darden Restaurants (DRI - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank #2 at present.
Darden Restaurants is expected to report first-quarter fiscal 2024 results on Sep 21. The Zacks Consensus Estimate for DRI’s earnings is pegged at $1.72 per share.
Image: Bigstock
Adobe (ADBE) to Report Q3 Earnings: What's in the Offing?
Adobe Inc. (ADBE - Free Report) is set to report third-quarter fiscal 2023 results on Sep 14.
For the fiscal third quarter, the company expects non-GAAP earnings of $3.95-$4.00 per share. The Zacks Consensus Estimate for earnings is pegged at $3.97 per share, indicating growth of 16.8% from the year-ago reported figure.
Adobe projects total revenues between $4.83 and $4.87 billion. The consensus mark for the same is pegged at $4.85 billion, implying growth of 9.5% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average earnings surprise being 3.06%.
Adobe Inc. Price and EPS Surprise
Adobe Inc. price-eps-surprise | Adobe Inc. Quote
Factors to Consider
Solid momentum across the Digital Media and Digital Experience segments are likely to have driven top-line growth for the company in the to-be-reported quarter.
Robust Creative Cloud and Document Cloud are expected to have contributed well to the performance of the Digital Media segment in the fiscal third quarter. Adobe expects Digital Media revenues between $3.55 and $3.57 billion. The Zacks Consensus Estimate for the same is pegged at $3.6 billion, indicating growth of 10.2% year over year.
Adobe’s growing momentum in generative AI on the back of Firefly might have remained a major positive. The integration of generative AI capabilities into Photoshop, Illustrator and Adobe Express are likely to have contributed well to the performance of Creative Cloud.
The growing adoption of Premiere Pro, solid momentum across the Adobe Express platform and benefits from the Frame.io acquisition are expected to have accelerated growth in Creative revenues in the quarter under review.
The consensus mark for Creative Cloud revenues stands at $2.89 billion, reflecting growth of 10.1% from the year-ago quarter.
Solid momentum across the Document Cloud enterprise business and strength in the Acrobat ecosystem are anticipated to have contributed well to Document Cloud revenues. The growing demand for PDF collaboration services might have been a tailwind.
The consensus mark for Document Cloud revenues stands at $671 million, reflecting growth of 10.5% from the year-ago quarter.
Growing Adobe Experience Cloud subscriptions on the heels of the rising adoption of Adobe Marketing Cloud, Adobe Analytics Cloud and Adobe Advertising Cloud is expected to have benefited Adobe’s Digital Experience segment in the quarter under review.
Its solid momentum in Real-Time CDP, Adobe Product Analytics, Content Supply Chain solutions and Adobe Mis Modeler is likely to have contributed well. The growing demand for Workfront might have been a positive
The company anticipates Digital Experience revenues between $1.21 and $1.23 billion. The Zacks Consensus Estimate for the same is pegged at $1.22 billion, indicating growth of 8.9% year over year.
However, the ongoing tension between Russia and Ukraine is expected to have remained a major headwind in the fiscal third quarter.
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. That is not the case here.
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.
The company currently carries a Zacks Rank #2.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Accenture (ACN - Free Report) has an Earnings ESP of +0.08% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Accenture is scheduled to release fourth-quarter fiscal 2023 results on Sep 28. The Zacks Consensus Estimate for ACN’s earnings per share is pegged at $2.64.
FedEx (FDX - Free Report) has an Earnings ESP of +4.6% and currently carries a Zacks Rank #2.
FedEx is set to report first-quarter fiscal 2024 results on Sep 20. The Zacks Consensus Estimate for FDX’s earnings is pinned at $3.68 per share.
Darden Restaurants (DRI - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank #2 at present.
Darden Restaurants is expected to report first-quarter fiscal 2024 results on Sep 21. The Zacks Consensus Estimate for DRI’s earnings is pegged at $1.72 per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.