Adobe Systems (NASDAQ: ADBE) has confirmed the release date for its Q1 20212 results, which will be on Tuesday, March 21, 2022, after the closing bell.
What to look for?
Earnings: Stockearning’s estimated EPS for Q1 2022 is expected to be $2.77 per share. When the company released its Q4 2021 earnings, it guided for Q1 2022 EPS of $3.35 per share and said that it anticipates FY2022 EPS of $13.7. In the fourth quarter of 2021, the company reported an EPS of $3.2, matching estimated earnings of $3.2 per share. Historical EPS performance shows that the company has, in the past 12 quarters, topped estimates 32 times (88%), matched twice (5%), and missed two times (5%).
Revenue: In Q1 2022, the company is anticipating sales growth of 15%, which is a slowdown from the 20% seen in the fourth quarter and below the 23% increase in remaining performance obligations that represent the revenue for future periods. Adobe reported revenue of $4.11 billion in the fourth quarter, topping analysts' estimates.
Stock Movement: ADBE shares have lost 29.85 since the company released its Q4 2021 earnings. Interestingly, following the earnings release, the company's shares have been DOWN 25 times in the past 47 quarters. So, the historical price reaction suggests a 53% probability of the share price going DOWN following the earnings release. According to the Stockearning algorithm, the predicted volatility on the first day is +/-5%, while the predicted volatility on the seventh day is +/-5%.
What analysts are saying: Jefferies analyst Brent Thill slashed his price target on the stock from $680 to $550 and maintained a Buy rating in the shares ahead of Q1 2022 earnings results. Thill told investors in a research note that the company is experiencing a number of near-term obstacles, including decreasing GDP, a powerful US dollar, the situation in Ukraine, and competitive pressures like Canva. However, he feels that much of this has already been reflected in the stock's 22 percent year-to-date fall.
Stifel analyst J. Parker Lane lowered his price target in the stock from $700 to $600 to show software multiple compression and kept a Buy rating in the shares. Lane believes Adobe's broad platform is better suited to support the prospect of omnichannel interaction and digital transformations, as the business kicked off its Summit convention on Monday with a range of product revelations centered on supporting a digital revolution while improving the online experience for all.
Wells Fargo analyst Michael Turrin slashed his price target on the stock from $725 to $625 and maintained a Buy rating in the shares. Turrin cited recurrent compression in broader software and an incremental danger of top-line slowing and mild margin compression. Also, Barclays analyst Saket Kalia slashed the ADBE price target from $665 to $540 but maintained a Buy rating on the shares ahead of Q1 2022 earnings. Kalia stated that Street estimates are too high on Q2 2022 net new annual recurring revenues.
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