Back to top

Image: Bigstock

Wall Street's Insights Into Key Metrics Ahead of Adobe (ADBE) Q4 Earnings

Read MoreHide Full Article

In its upcoming report, Adobe Systems (ADBE - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $4.13 per share, reflecting an increase of 14.7% compared to the same period last year. Revenues are forecasted to be $5.01 billion, representing a year-over-year increase of 10.7%.

The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation 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.

With that in mind, let's delve into the average projections of some Adobe metrics that are commonly tracked and projected by analysts on Wall Street.

Analysts' assessment points toward 'Revenue- Digital Media' reaching $3.68 billion. The estimate points to a change of +11.6% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Revenue- Publishing and Advertising' of $63.70 million. The estimate indicates a change of -15.1% from the prior-year quarter.

Analysts predict that the 'Revenue- Digital Media- Creative Cloud' will reach $2.98 billion. The estimate indicates a change of +11.3% from the prior-year quarter.

The average prediction of analysts places 'Revenue- Digital Media- Document Cloud' at $698.50 million. The estimate points to a change of +12.8% from the year-ago quarter.

The combined assessment of analysts suggests that 'Revenue- Services and other' will likely reach $189.64 million. The estimate points to a change of +6.5% from the year-ago quarter.

Analysts expect 'Revenues- Products' to come in at $121.51 million. The estimate points to a change of +5.7% from the year-ago quarter.

Analysts forecast 'Digital Experience Subscription Revenue' to reach $1.12 billion. The estimate indicates a year-over-year change of +11%.

It is projected by analysts that the 'Net Revenues- Subscription' will reach $4.68 billion. The estimate suggests a change of +10.7% year over year.

According to the collective judgment of analysts, 'Business Unit - Digital Media - Creative ARR (Annualized Recurring)' should come in at $12.35 billion. Compared to the present estimate, the company reported $10.98 billion in the same quarter last year.

The consensus among analysts is that 'Business Unit - Digital Media - Total Digital Media ARR (Annual)' will reach $15.12 billion. The estimate compares to the year-ago value of $13.26 billion.

Based on the collective assessment of analysts, 'Business Unit - Digital Media - Document Services ARR (Annual)' should arrive at $2.78 billion. Compared to the present estimate, the company reported $2.37 billion in the same quarter last year.

View all Key Company Metrics for Adobe here>>>

Shares of Adobe have demonstrated returns of +5.4% over the past month compared to the Zacks S&P 500 composite's +4.9% change. With a Zacks Rank #2 (Buy), ADBE is expected to beat the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Adobe Inc. (ADBE) - free report >>

Published in