The upcoming report from Adobe Systems (ADBE) is expected to reveal quarterly earnings of $5.83 per share, indicating an increase of 15.2% compared to the year-ago period. Analysts forecast revenues of $6.46 billion, representing an increase of 9.9% year over year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Given this perspective, it's time to examine the average forecasts of specific Adobe metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts forecast 'Revenue- Services and other' to reach $136.16 million. The estimate indicates a change of -5.4% from the prior-year quarter.
Analysts predict that the 'Revenue- Subscription' will reach $6.25 billion. The estimate points to a change of +10.9% from the year-ago quarter.
The average prediction of analysts places 'Revenue- Products' at $69.87 million. The estimate indicates a year-over-year change of -20.6%.
View all Key Company Metrics for Adobe here>>>Shares of Adobe have experienced a change of -0.6% in the past month compared to the +1.9% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), ADBE is expected to mirror 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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This article originally published on Zacks Investment Research (zacks.com).
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