Adobe Inc. (NYSE: ADBE) has announced the release date for Q4 2021 earnings results which will be on Thursday, December 16, 2021.
What to look for
Earnings: Stockearning’s Estimated EPS for the current quarter under review is $3.18 per share. In the same quarter a year ago, the company reported earnings of $2.81 per share, indicating a YoY growth of 13.2%. Historical EPS Performance Shows that the company has in the last 12 quarters beat estimates 11 times (91%) and missed once (8%).
Revenue: In the last quarter, the company had revenue of $3.94 billion relative to $3.9 billion. Adobe’s revenue was up 22% compared to a year ago. In addition, digital media revenue was $2.87 billion representing 23% growth, and creative revenue grew 21% to $2.37 billion.
Stock Movement: Since the last earnings release, Adobe has lost 13.5%. ADBE shares have been UP 25 times out of the past 46 quarters following the earnings release. So, the historical price reaction suggests a 54% probability of the share price going UP after Adobe reports its quarterly earnings. According to the Stockearning algorithm, the predicted first-day move is 4%, while the predicted move on the seventh day is 5%.
What analysts are saying
Atlantic Equities analyst Peter Hazel commenced coverage on Adobe, upgraded its shares from "Hold" to "Buy," and raised its price target from $600 to $820. The analyst noted that the company is in a dominant position in the Creative Cloud segment with high pricing power and barriers to entry. Hazel expects to retain market share and deliver revenue growth in the mid-teens and margin expansion. He told investors that he has a differentiated view regarding the Digital Experiment sector with a forecast above consensus due to his positive view on Adobe leadership.
Credit Suisse analyst Phil Winslow commenced coverage on Adobe with a "Hold" rating and a price target of $700. The analyst told investors that Adobe's successful shift to a subscription model and ability to increase the total addressable market via strategic acquisitions has been impressive. The stock's current valuation reflects the positives. However, Winslow said that peaking net new Digital media ARR is expected to drive decelerating growth in I revenue and lead to less forward upside relative to consensus estimates.
Also, Deutsche Bank analyst Brad Zelnick commenced coverage on the stock with a “Buy” rating and a price target of $770 per share. Zelnick expects the company to be a top digital experiences enabler and sees sustainable future growth even though it's already a substantial market share in the main Creative market. The analyst noted that Adobe's digital experience strategy has grown since the acquisition of Omniture almost a decade ago, with synergies between digital experiences and digital marketing more logical than ever.
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