Will Adobe (ADBE) Post Another Positive Earnings Surprise

What's Happening With ADBE View more about ADBE >

Software maker Adobe (ADBE) reports its fiscal first-quarter numbers after the market close March 14. Analysts forecast earnings of $1.61 per share on revenue of $2.54 billion. During the same period last year the company earned $1.55 on revenue of $2.08 billion and the stock is up 11.8% on the year.

Technical Analysis

ADBE was recently trading at $253.02 down $24.59 from its 12-month high and $48.07 above its 12-month low. InvestorsObserver’s Stock Score Report gives ADBE a 89 long-term technical score and a 72 short-term technical score. The stock has recent support above $245 and recent resistance below $265. Of the 24 analysts who cover the stock 13 rate it Strong Buy, 1 rate it Buy, 10 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, ADBE gets a score of 70 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Adobe stock has a great earnings track record, with better than expected numbers on the top and bottom line each of the last five quarters. The street expects another earnings beat from the company with a whisper number of $1.63 for the quarter. ADBE has enjoyed a strong start to the year after selling off toward the end of 2018 along with the overall tech sector. Adobe has done a great job in recent years moving to a cloud-based subscription service, and analysts will pay close attention to the results of its Digital Media segment, which includes the Creative Cloud portfolio. Last quarter the segment reported revenue of $1.71 billion, which barely topped the $1.7 billion consensus.

The company is enjoying strong growth, with earnings up 47% per annum over the last five years. Growth is expected to slow but remain strong moving forward. Analysts forecast annual earnings growth of 22% for the next five years and the stock has a forward P/E of 26. The tech sector is enjoying a resurgence after a disappointing close to 2018, and ADBE stock should continue to build on its recent gains if results do top estimates as expected for the quarter. Analysts see additional upside in the stock with an average price target of $288.62.

ADBE
About Adobe Systems Incorporated

Adobe provides content creation, document management, and digital marketing and advertising software and services to creative professionals and marketers for creating, managing, delivering, measuring, optimizing and engaging with compelling content multiple operating systems, devices and media. The company operates with three segments: digital media content creation, digital experience for marketing solutions, and publishing for legacy products (less than 5% of revenue).

  • Last Price:
    $259.69
  • Previous Close:
    $264.18
  • Change:
    $-4.49 (-1.70%)
  • Open:
    $263.47
  • Volume:
    3,421,549
  • Average Volume (100 Day):
    3,756,393
  • Market Capitalization:
    $127.0 B
  • Day's Range:
    $259.52 - $264.64
  • Dividend Yield:
    0.00%
  • 52-week Range:
    $278 - $204.95
  • P-E:
    49.00
  • EPS:
    $5.39
  • Earnings Date:
    6/13/19
  • Ex Dividend Date:
    N/A
  • Sector:
    Technology
  • Industry:
    Software - Application
  • Analyst Average Recommendation:
    Moderate Buy

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