Adobe Q1 Earnings Preview: Analysts See Strong Growth Trends, Spotlight On ‘Generative AI-Enabled Suite
Computer software company Adobe Inc (NASDAQ:ADBE) reports first-quarter financial results Thursday, March 14 after market close.
Here’s a look at the earnings estimates from analysts, their insights, and key items to watch.
Earnings Estimates: Analysts expect Adobe to report first quarter revenue of $5.14 billion, according to data Pro.
The company reported revenue of $4.66 billion in last year’s first quarter and reported revenue of $5.05 billion in the most recently reported fourth quarter.
Adobe has beaten analyst estimates for revenue in four of the last five quarters and nine of the last 10 quarters.
Analysts expect the company to report earnings per share of $4.38 for the first quarter, compared to $3.80 reported in the year prior period. The company has beaten earnings per share estimates from analysts in eight straight quarters.
Guidance from Adobe for the first quarter is for revenue to be between $5.1 billion and $5.15 billion and earnings per share to be between $4.35 and $4.40.
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What Analysts Are Saying: Piper Sandler analyst Brent Bracelin sees the risk-reward for Adobe stock turning favorable in the next artificial intelligence innovation cycle.
The analyst has an Overweight rating and $705 price target.
“We recommend growth investors revisit ADBE ahead of the earnings report on 3/14, given results could be better than feared based on favorable 3P data trends,” Bracelin said.
The analyst said a large base of 500+ million using the freemium version of Acrobat Reader could lead to increased monetization for Adobe with its AI Assistant offering.
“We see top-of-funnel website activity as one of the health indicators for new customer activity.”
Positive data points from due diligence are highlighted by JMP Securities analyst Patrick Walravens in a new investor note.
The analyst, who has a Market Perform rating and no price target, said investors are likely focused on the artificial intelligence tools being offered by Adobe.
