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Adobe (ADBE) to Report Q1 Earnings: What's in the Offing?
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Adobe Inc. (ADBE - Free Report) is set to report first-quarter fiscal 2023 results on Mar 15.
For the fiscal first quarter, the company expects non-GAAP earnings in the band of $3.65-$3.70 per share. The Zacks Consensus Estimate for earnings is pegged at $3.66 per share, indicating growth of 8.6% from the year-ago reported figure.
Adobe projects total revenues between $4.60 and $4.64 billion. The consensus mark for the same is pegged at $4.61 billion, implying growth of 8.3% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average earnings surprise being 1.85%.
Solid momentum across the Digital Media and Digital Experience segments is 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 first quarter. Adobe expects Digital Media revenues between $3.350 and $3.375 billion.
The growing adoption of Premiere Pro, solid momentum across the Adobe Express platform and benefits from the Frame.io acquisition is expected to have accelerated growth in Creative revenues in the quarter under review.
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 momentum of PDFs on Acrobat Mobile is expected to have been another positive.
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.
Rising demand for professional service, the strengthening momentum of Experience Cloud in the healthcare industry and the growing adoption of Adobe Experience Manager are likely to have contributed well.
The company anticipates Digital Experience revenues between $1.16 and $1.18 billion. Digital Experience subscription revenues are anticipated to be within $1.025-$1.045 billion.
However, the ongoing tensions between Russia and Ukraine, due to which Adobe halted its sales of products and services in Russia and Belarus, are expected to have remained major headwinds in the fiscal first 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Adobe has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this reporting cycle.
Catalyst Pharmaceuticals is set to report its fourth-quarter 2022 results on Mar 15. The Zacks Consensus Estimate for CPRX’s earnings is pegged at 21 cents per share, suggesting an increase of 133.3% from the prior-year quarter’s reported figure.
Arcellx (ACLX - Free Report) has an Earnings ESP of +3.57% and a Zacks Rank #3.
Arcellx is set to report its fourth-quarter 2022 results on Mar 23. The Zacks Consensus Estimate for ACLX’s loss is pegged at 84 cents per share, narrower than the loss of $39.85 per share reported in the year-ago quarter.
Array Technologies (ARRY - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank #3.
Array Technologies is set to report its fourth-quarter 2022 results on Mar 15. The Zacks Consensus Estimate for ARRY’s earnings is pegged at 10 cents per share. The company reported a loss of 6 cents per share in the prior-year quarter.
Image: Bigstock
Adobe (ADBE) to Report Q1 Earnings: What's in the Offing?
Adobe Inc. (ADBE - Free Report) is set to report first-quarter fiscal 2023 results on Mar 15.
For the fiscal first quarter, the company expects non-GAAP earnings in the band of $3.65-$3.70 per share. The Zacks Consensus Estimate for earnings is pegged at $3.66 per share, indicating growth of 8.6% from the year-ago reported figure.
Adobe projects total revenues between $4.60 and $4.64 billion. The consensus mark for the same is pegged at $4.61 billion, implying growth of 8.3% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with the average earnings surprise being 1.85%.
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 is 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 first quarter. Adobe expects Digital Media revenues between $3.350 and $3.375 billion.
The growing adoption of Premiere Pro, solid momentum across the Adobe Express platform and benefits from the Frame.io acquisition is expected to have accelerated growth in Creative revenues in the quarter under review.
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 momentum of PDFs on Acrobat Mobile is expected to have been another positive.
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.
Rising demand for professional service, the strengthening momentum of Experience Cloud in the healthcare industry and the growing adoption of Adobe Experience Manager are likely to have contributed well.
The company anticipates Digital Experience revenues between $1.16 and $1.18 billion. Digital Experience subscription revenues are anticipated to be within $1.025-$1.045 billion.
However, the ongoing tensions between Russia and Ukraine, due to which Adobe halted its sales of products and services in Russia and Belarus, are expected to have remained major headwinds in the fiscal first 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Adobe has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this reporting cycle.
Catalyst Pharmaceuticals (CPRX - Free Report) has an Earnings ESP of +6.8% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Catalyst Pharmaceuticals is set to report its fourth-quarter 2022 results on Mar 15. The Zacks Consensus Estimate for CPRX’s earnings is pegged at 21 cents per share, suggesting an increase of 133.3% from the prior-year quarter’s reported figure.
Arcellx (ACLX - Free Report) has an Earnings ESP of +3.57% and a Zacks Rank #3.
Arcellx is set to report its fourth-quarter 2022 results on Mar 23. The Zacks Consensus Estimate for ACLX’s loss is pegged at 84 cents per share, narrower than the loss of $39.85 per share reported in the year-ago quarter.
Array Technologies (ARRY - Free Report) has an Earnings ESP of +0.27% and a Zacks Rank #3.
Array Technologies is set to report its fourth-quarter 2022 results on Mar 15. The Zacks Consensus Estimate for ARRY’s earnings is pegged at 10 cents per share. The company reported a loss of 6 cents per share in the prior-year quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.