- Adobe’s adjusted EPS forecast beats estimates with a range of $4.35 to $4.40, surpassing the estimated $4.27.
- Adobe’s 2024 year forecast for adjusted EPS is between $17.60 to $18.00, matching the estimate of $18.00.
- In the fourth quarter, Adobe’s adjusted EPS was $4.27, which is a significant increase from the previous year’s $3.60 and surpasses the estimate of $4.14.
- Adobe’s revenue grew by 12% year-on-year (y/y) to reach $5.05 billion, slightly above the estimated $5.02 billion.
- The company’s subscription revenue also saw an increase of 13% y/y, reaching $4.76 billion and beating the estimate of $4.74 billion.
- Adobe’s product revenue was $114 million, a slight decrease of 0.9% y/y, but still higher than the estimated $103.4 million.
- The company’s Research and Development (R&D) expenses increased by 15% y/y to $889 million, exceeding the estimate of $876.9 million.
- Adobe’s adjusted operating income grew by 16% y/y to $2.34 billion, surpassing the estimated $2.29 billion.
- Services and other revenue for the company was $171 million, a decrease of 3.9% y/y, but still higher than the estimated $167.2 million.
- Adobe’s executive vice president and CFO, Dan Durn, commented on the company’s impressive performance in FY23, highlighting the operating cash flows of $7.30 billion and world-class margins.
- Adobe’s stock currently stands at 28 buys, 10 holds, and 3 sells.
Adobe Systems on Smartkarma
Adobe Systems is receiving a lot of attention from independent analysts on Smartkarma, an independent investment research network. For example, Baptista Research recently published two research reports on Adobe Systems. In the first report, titled “Adobe Inc.: New AI Investments That Are About To Change Everything! – Major Drivers“, the analyst had a bullish sentiment and concluded that Adobe managed to exceed analyst expectations in terms of revenue as well as earnings. The second report, titled “Adobe Inc.: AI Investments To Save The Day? – Key Drivers“, also had a bullish sentiment, and the analyst mentioned that Adobe accomplished remarkable feats in Digital Media.
On the other hand, MBI Deep Dives had a bearish sentiment in their research report titled “Adobe 2Q’23 Update“. The report mentioned that Adobe posted its highest ever gross margin of 67.3% in 2Q’23, but GAAP operating margin was 33.7%, down from 34.9% in 2Q’22. Lastly, Vladimir Dimitrov, CFA had a bullish sentiment in their report titled “Adobe: Opportunities In Generative AI, Q2 Earnings And Considerations For Long-Term Holders“. The analyst stated that Adobe’s share price is experiencing significant momentum, which is likely to be sustained for the time being.
A look at Adobe Systems Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.0 |
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, a leading software product and technology provider, has a long-term outlook that looks very promising. According to the Smartkarma Smart Scores, the company has strong scores in Growth, Resilience and Momentum, indicating that its long-term prospects are very good. Its Value and Dividend scores are not as high as the others, but are still respectable.
Adobe Systems Incorporated develops, markets, and supports computer software products and technologies. These products provide users with the ability to express and use information across all print and electronic media. The company’s products are varied, ranging from application software to type products and content for creating, distributing, and managing information. With its strong outlook according to the Smartkarma Smart Scores, Adobe Systems Incorporated looks set to continue to be a leader in the software product and technology industry.
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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