Analysts Expect Adobe Inc. (NASDAQ:ADBE) to Post $2.79 EPS


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Brokerages expect that Adobe Inc. (NASDAQ:ADBE) will post earnings of $2.79 per share for the current fiscal quarter, Zacks Investment Research reports. Eight analysts have provided estimates for Adobe’s earnings, with the lowest EPS estimate coming in at $2.62 and the highest estimate coming in at $2.85. Adobe posted earnings of $2.45 per share during the same quarter last year, which would indicate a positive year over year growth rate of 13.9%. The firm is expected to issue its next earnings report on Thursday, June 10th.

On average, analysts expect that Adobe will report full year earnings of $11.78 per share for the current fiscal year, with EPS estimates ranging from $11.20 to $12.05. For the next year, analysts anticipate that the firm will post earnings of $13.65 per share, with EPS estimates ranging from $12.84 to $14.38. Zacks’ EPS calculations are an average based on a survey of sell-side research firms that cover Adobe.

Adobe (NASDAQ:ADBE) last issued its quarterly earnings results on Monday, March 22nd. The software company reported $3.14 earnings per share for the quarter, beating analysts’ consensus estimates of $2.79 by $0.35. Adobe had a return on equity of 35.81% and a net margin of 40.88%. The business had revenue of $3.91 billion for the quarter, compared to the consensus estimate of $3.76 billion. During the same quarter in the previous year, the company posted $2.27 earnings per share. Adobe’s revenue for the quarter was up 26.3% compared to the same quarter last year.

A number of brokerages have commented on ADBE. JPMorgan Chase & Co. boosted their target price on Adobe from $585.00 to $595.00 and gave the company an “overweight” rating in a research note on Wednesday, March 24th. Barclays restated a “buy” rating and issued a $605.00 target price on shares of Adobe in a research note on Sunday, December 13th. The Goldman Sachs Group restated a “neutral” rating and issued a $523.00 target price on shares of Adobe in a research note on Wednesday, March 3rd. Morgan Stanley boosted their target price on Adobe from $560.00 to $575.00 and gave the company an “overweight” rating in a research note on Tuesday, March 30th. Finally, UBS Group restated a “buy” rating on shares of Adobe in a research note on Thursday. One investment analyst has rated the stock with a sell rating, four have assigned a hold rating and nineteen have given a buy rating to the company. The stock presently has an average rating of “Buy” and a consensus price target of $547.58.

Shares of ADBE stock traded up $7.54 on Friday, reaching $500.95. 80,247 shares of the company’s stock traded hands, compared to its average volume of 2,869,100. Adobe has a 12-month low of $308.20 and a 12-month high of $536.88. The company has a debt-to-equity ratio of 0.31, a quick ratio of 1.44 and a current ratio of 1.48. The company has a market capitalization of $239.45 billion, a P/E ratio of 46.00, a price-to-earnings-growth ratio of 2.55 and a beta of 0.97. The business’s 50 day moving average price is $461.15 and its two-hundred day moving average price is $476.51.

Adobe declared that its board has authorized a stock repurchase program on Thursday, December 10th that allows the company to buyback $15.00 billion in shares. This buyback authorization allows the software company to reacquire up to 6.6% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s board believes its shares are undervalued.

In related news, EVP Scott Belsky sold 600 shares of the business’s stock in a transaction dated Friday, January 15th. The stock was sold at an average price of $463.07, for a total transaction of $277,842.00. Following the completion of the transaction, the executive vice president now owns 15,467 shares of the company’s stock, valued at approximately $7,162,303.69. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO John Francis Murphy sold 2,139 shares of the business’s stock in a transaction dated Monday, January 25th. The stock was sold at an average price of $474.51, for a total value of $1,014,976.89. Following the transaction, the chief financial officer now directly owns 19,553 shares of the company’s stock, valued at approximately $9,278,094.03. The disclosure for this sale can be found here. Insiders have sold a total of 112,558 shares of company stock valued at $52,990,341 in the last three months. 0.31% of the stock is owned by insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. BlackRock Inc. raised its holdings in Adobe by 2.0% in the 4th quarter. BlackRock Inc. now owns 37,765,781 shares of the software company’s stock valued at $18,887,420,000 after acquiring an additional 753,183 shares in the last quarter. Jennison Associates LLC raised its holdings in Adobe by 2.3% in the 4th quarter. Jennison Associates LLC now owns 7,090,041 shares of the software company’s stock valued at $3,545,871,000 after acquiring an additional 157,886 shares in the last quarter. Morgan Stanley raised its holdings in Adobe by 8.2% in the 4th quarter. Morgan Stanley now owns 6,714,823 shares of the software company’s stock valued at $3,358,218,000 after acquiring an additional 509,861 shares in the last quarter. Fisher Asset Management LLC raised its holdings in Adobe by 5.0% in the 4th quarter. Fisher Asset Management LLC now owns 5,818,183 shares of the software company’s stock valued at $2,909,790,000 after acquiring an additional 278,509 shares in the last quarter. Finally, Norges Bank acquired a new position in Adobe in the 4th quarter valued at approximately $2,359,174,000. 82.43% of the stock is owned by institutional investors and hedge funds.

About Adobe

Adobe Inc operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, teams, and enterprises to create, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud, a subscription service that allows customer to download and access the latest versions of its creative products.

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Earnings History and Estimates for Adobe (NASDAQ:ADBE)

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