We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Compared to Estimates, Adobe (ADBE) Q3 Earnings: A Look at Key Metrics
Read MoreHide Full Article
For the quarter ended August 2023, Adobe Systems (ADBE - Free Report) reported revenue of $4.89 billion, up 10.3% over the same period last year. EPS came in at $4.09, compared to $3.40 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4.85 billion, representing a surprise of +0.72%. The company delivered an EPS surprise of +3.02%, with the consensus EPS estimate being $3.97.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Adobe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Business Unit - Digital Media - Creative ARR (Annualized Recurring): $11.97 billion compared to the $11.91 billion average estimate based on five analysts.
Business Unit - Digital Media - Total Digital Media ARR (Annual): $14.60 billion versus $14.56 billion estimated by four analysts on average.
Business Unit - Digital Media - Document Services ARR (Annual): $2.63 billion versus the four-analyst average estimate of $2.66 billion.
Revenue- Digital Media: $3.59 billion versus $3.56 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +11.2% change.
Revenue- Publishing and Advertising: $67 million compared to the $72.04 million average estimate based on seven analysts. The reported number represents a change of -17.3% year over year.
Revenue- Digital Experience: $1.23 billion versus $1.22 billion estimated by seven analysts on average.
Revenue- Digital Media- Creative Cloud: $2.91 billion versus $2.89 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.8% change.
Revenue- Digital Media- Document Cloud: $685 million versus the five-analyst average estimate of $670.97 million. The reported number represents a year-over-year change of +12.9%.
Revenue- Services and other: $163 million compared to the $180.54 million average estimate based on four analysts. The reported number represents a change of -8.9% year over year.
Revenues- Products: $96 million versus $134.36 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -23.8% change.
Digital Experience Subscription Revenue: $1.10 billion compared to the $1.08 billion average estimate based on three analysts.
Net Revenues- Subscription: $4.63 billion versus $4.53 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +12.2% change.
Shares of Adobe have returned +7.6% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Compared to Estimates, Adobe (ADBE) Q3 Earnings: A Look at Key Metrics
For the quarter ended August 2023, Adobe Systems (ADBE - Free Report) reported revenue of $4.89 billion, up 10.3% over the same period last year. EPS came in at $4.09, compared to $3.40 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $4.85 billion, representing a surprise of +0.72%. The company delivered an EPS surprise of +3.02%, with the consensus EPS estimate being $3.97.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Adobe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Business Unit - Digital Media - Creative ARR (Annualized Recurring): $11.97 billion compared to the $11.91 billion average estimate based on five analysts.
- Business Unit - Digital Media - Total Digital Media ARR (Annual): $14.60 billion versus $14.56 billion estimated by four analysts on average.
- Business Unit - Digital Media - Document Services ARR (Annual): $2.63 billion versus the four-analyst average estimate of $2.66 billion.
- Revenue- Digital Media: $3.59 billion versus $3.56 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +11.2% change.
- Revenue- Publishing and Advertising: $67 million compared to the $72.04 million average estimate based on seven analysts. The reported number represents a change of -17.3% year over year.
- Revenue- Digital Experience: $1.23 billion versus $1.22 billion estimated by seven analysts on average.
- Revenue- Digital Media- Creative Cloud: $2.91 billion versus $2.89 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10.8% change.
- Revenue- Digital Media- Document Cloud: $685 million versus the five-analyst average estimate of $670.97 million. The reported number represents a year-over-year change of +12.9%.
- Revenue- Services and other: $163 million compared to the $180.54 million average estimate based on four analysts. The reported number represents a change of -8.9% year over year.
- Revenues- Products: $96 million versus $134.36 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -23.8% change.
- Digital Experience Subscription Revenue: $1.10 billion compared to the $1.08 billion average estimate based on three analysts.
- Net Revenues- Subscription: $4.63 billion versus $4.53 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +12.2% change.
View all Key Company Metrics for Adobe here>>>Shares of Adobe have returned +7.6% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.