- FY Adjusted EPS Forecast: Adobe raised its fiscal year adjusted EPS forecast to $18.00 – $18.20, from $17.60 – $18.00. The estimate was $18.02.
- Third Quarter Forecast: Adobe forecasts an adjusted EPS of $4.50 – $4.55 for the third quarter, versus an estimate of $4.48.
- Second Quarter Results:
- Adjusted EPS came in at $4.48, compared to $3.91 year-over-year (y/y), beating the estimate of $4.40.
- Revenue was $5.31 billion, up 10% y/y, slightly exceeding the estimate of $5.29 billion.
- Subscription revenue reached $5.06 billion, a 12% increase y/y, beating the estimate of $5.02 billion.
- Product revenue was $104 million, down 20% y/y, missing the estimate of $115 million.
- R&D expenses were $984 million, up 12% y/y, higher than the estimate of $943.1 million.
- Adjusted operating income was $2.44 billion, a 12% increase y/y, surpassing the estimate of $2.42 billion.
- Services and other revenue came in at $145 million, down 14% y/y, below the estimate of $156 million.
- Shares Movement: Adobe’s shares rose by 7.8% in post-market trading to $494.74, with 22,239 shares traded.
- Analyst Ratings: There are currently 34 buys, 8 holds, and 3 sells on Adobe.
Adobe Systems on Smartkarma
Analyst coverage of Adobe Systems on Smartkarma showcases a positive sentiment from top independent analysts. Baptista Research, for instance, highlighted Adobe’s impressive financial results in the first quarter of fiscal year 2024. With a revenue of $5.18 billion, reflecting a 12% year-over-year growth, Adobe’s products continue to drive the digital economy. The report also noted GAAP earnings per share at $1.36 and non-GAAP earnings per share at $4.48, showing an 18% growth year-over-year.
Furthermore, Baptista Research emphasized Adobe’s success in the fourth quarter, crediting it to innovative strides in Creative Cloud and Document businesses. Positioned as a leading platform for global content creation, Creative Cloud raked in $3 billion in revenue, showcasing Adobe’s prowess in the industry. These insights from independent analysts on Smartkarma provide valuable perspectives for investors considering Adobe Systems.
A look at Adobe Systems Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Adobe Systems Incorporated has received a mixed outlook based on the Smartkarma Smart Scores. While the company scored high in resilience and growth, with scores of 4 and 3 respectively, its value and dividend scores were relatively lower at 2 and 1. The momentum score stood at 3, reflecting moderate performance in this aspect. This indicates a solid long-term outlook for Adobe Systems, especially in terms of its ability to adapt and grow in the market.
Adobe Systems is known for developing, marketing, and supporting computer software products and technologies. The company’s focus on providing products that enable users to express and utilize information across various media formats positions it as a key player in the industry. With a strong emphasis on innovation and adaptability, Adobe Systems is poised to capitalize on its resilience and growth potential for sustained success in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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