Adobe ADBE is scheduled to report its first quarter fiscal 2020 results on Thursday, March 12. Shares of ADBE fell during last week’s coronavirus-based market correction, but this might set up a better buying opportunity for those high on the tech stock.
Adobe is a tech powerhouse that invented the PDF in the early 1990s. Today, ADBE sells a suite of creative software solutions such as Photoshop and Lightroom. Adobe also offers cloud-based subscription solutions for businesses that help it compete against the likes of Salesforce CRM and others.
Meanwhile, the San Jose, California-based company’s Adobe Spark has capitalized on the rapid rise of digital media. Overall, Adobe’s 2019 revenue jumped 24% to $11.17 billion, with Digital Experience sales up 31%.
Looking ahead, Our Zacks estimates call for Adobe’s Q1 2020 revenue to climb 17% to $3.04 billion. The company’s adjusted earnings are projected to surge over 30% to reach $2.23 a share.
Adobe’s fiscal year sales are then projected to jump 18% and 15%, respectively in 2020 and 2021. At the bottom end of the income-statement, ADBE’s adjusted full-year earnings are expected to climb 25% and 17% during this same stretch.
Adobe has seen its earnings revisions climb recently to help it earn a Zacks Rank #2 (Buy) right now. ADBE stock also holds an “A” grade for Growth in our Style Scores system.
Investors should note that Adobe stock sits below its recent highs because of the coronavirus-base selloff. But ADBE stock bounced back Monday alongside other tech firms such as Apple AAPL, Microsoft MSFT, Intuit INTU, and much of the rest of the market. Plus, Adobe’s software services focused business means it is less exposed to the economic slowdown in China and elsewhere.
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