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Unveiling Adobe (ADBE) Q3 Outlook: Wall Street Estimates for Key Metrics

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Wall Street analysts forecast that Adobe Systems (ADBE - Free Report) will report quarterly earnings of $4.53 per share in its upcoming release, pointing to a year-over-year increase of 10.8%. It is anticipated that revenues will amount to $5.37 billion, exhibiting an increase of 9.7% compared to the year-ago quarter.

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.

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 predict that the 'Revenue- Digital Media' will reach $3.97 billion. The estimate suggests a change of +10.4% year over year.

Analysts expect 'Revenue- Publishing and Advertising' to come in at $60.35 million. The estimate points to a change of -9.9% from the year-ago quarter.

Based on the collective assessment of analysts, 'Revenue- Digital Experience' should arrive at $1.34 billion. The estimate points to a change of +8.7% from the year-ago quarter.

Analysts' assessment points toward 'Revenue- Digital Media- Creative Cloud' reaching $3.18 billion. The estimate points to a change of +9.2% from the year-ago quarter.

The consensus among analysts is that 'Revenue- Digital Media- Document Cloud' will reach $790.70 million. The estimate indicates a year-over-year change of +15.4%.

It is projected by analysts that the 'Revenue- Services and other' will reach $163.69 million. The estimate indicates a year-over-year change of +0.4%.

The combined assessment of analysts suggests that 'Revenue- Products' will likely reach $111.98 million. The estimate points to a change of +16.7% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Digital Experience Subscription Revenue' of $1.21 billion. The estimate indicates a change of +10.2% from the prior-year quarter.

The consensus estimate for 'Net Revenue- Subscription' stands at $5.09 billion. The estimate indicates a change of +9.9% from the prior-year quarter.

Analysts forecast 'Business Unit - Digital Media - Creative ARR (Annualized Recurring)' to reach $13.46 billion. Compared to the current estimate, the company reported $11.97 billion in the same quarter of the previous year.

According to the collective judgment of analysts, 'Business Unit - Digital Media - Total Digital Media ARR (Annual)' should come in at $16.71 billion. Compared to the present estimate, the company reported $14.60 billion in the same quarter last year.

The average prediction of analysts places 'Business Unit - Digital Media - Document Services ARR (Annual)' at $3.25 billion. Compared to the present estimate, the company reported $2.63 billion in the same quarter last year.

View all Key Company Metrics for Adobe here>>>

Over the past month, Adobe shares have recorded returns of +5.1% versus the Zacks S&P 500 composite's +3.5% change. Based on its Zacks Rank #2 (Buy), ADBE will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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