Wall Street analysts forecast that Adobe Systems (ADBE) will report quarterly earnings of $5.17 per share in its upcoming release, pointing to a year-over-year increase of 11.2%. It is anticipated that revenues will amount to $5.9 billion, exhibiting an increase of 9% compared to the year-ago quarter.
Over the last 30 days, there has been a downward revision of 0.1% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Bearing this in mind, let's now explore the average estimates of specific Adobe metrics that are commonly monitored and projected by Wall Street analysts.
Analysts predict that the 'Revenue- Digital Media' will reach $4.38 billion. The estimate indicates a change of +9.8% from the prior-year quarter.
It is projected by analysts that the 'Revenue- Digital Experience' will reach $1.46 billion. The estimate indicates a change of +7.9% from the prior-year quarter.
According to the collective judgment of analysts, 'Revenue- Publishing and Advertising' should come in at $54.48 million. The estimate points to a change of -7.7% from the year-ago quarter.
The combined assessment of analysts suggests that 'Revenue- Services and other' will likely reach $141.06 million. The estimate indicates a year-over-year change of -3.4%.
The consensus estimate for 'Revenue- Subscription' stands at $5.66 billion. The estimate points to a change of +9.3% from the year-ago quarter.
Analysts' assessment points toward 'Revenue- Products' reaching $91.44 million. The estimate points to a change of +11.5% from the year-ago quarter.
The consensus among analysts is that 'Revenue- Subscription Revenue- Digital Experience' will reach $1.36 billion. The estimate indicates a change of +10.3% from the prior-year quarter.
Analysts expect 'Revenue- Subscription Revenue- Digital Media' to come in at $4.27 billion. The estimate points to a change of +8.9% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Revenue- Subscription Revenue- Publishing and Advertising' of $31.04 million. The estimate points to a change of +10.8% from the year-ago quarter.
Based on the collective assessment of analysts, 'Business Unit - Digital Media - Total Digital Media ARR (Annual)' should arrive at $18.57 billion. Compared to the present estimate, the company reported $16.76 billion in the same quarter last year.
View all Key Company Metrics for Adobe here>>>Shares of Adobe have demonstrated returns of +2.3% over the past month compared to the Zacks S&P 500 composite's +3.1% change. With a Zacks Rank #4 (Sell), ADBE is expected to lag the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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