What Analysts Are Saying About Adobe After Earnings

By Chris Lange Updated Jan 13, 6:24AM EST · Published Jun 24, 11:24AM EDT

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What Analysts Are Saying About Adobe After Earnings — © Thinkstock

Adobe Systems Inc. (NASDAQ: ADBE) released fiscal second-quarter financial results after the markets closed on Tuesday. As a result analysts piled into the company after it had a positive report, although views were somewhat mixed.

24/7 Wall St. has compiled some highlights from the earnings report as well as what some key analysts are saying after the fact.

The company had $0.71 in earnings per share (EPS) on a record $1.4 billion in revenue versus consensus estimates from Thomson Reuters that called for $0.68 in EPS on $1.40 billion in revenue. The same period from last year had $0.48 in EPS on $1.16 billion in revenue.

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During this quarter, the company reported that deferred revenue grew to $1.68 billion.

The Digital Media segment revenue grew by 26% from last year to a record $943 million, with Creative revenue growing 37% to a record $755 million. Strong Creative Cloud and Document Cloud adoption helped drive Digital Media Annualized Recurring Revenue (ARR) to $3.41 billion exiting the quarter, a quarter-over-quarter increase of $285 million.

Adobe Marketing Cloud achieved record revenue of $385 million that represents year-over-year growth of 18%.

The company issued guidance for the fiscal third-quarter, expecting EPS in the range of $0.69 to $0.79 and revenue in the range of $1.42 billion to $1.47 billion. There are consensus estimates calling for $0.71 in EPS on $1.47 billion in revenue for the coming quarter.

After the earnings were released a few analysts poured into the stock:

Cowen initiated coverage with an Outperform rating
Oppenheimer reiterated a Market Perform rating
Sanford Bernstein reiterated an Outperform rating with a $114 price target
Credit Suisse reiterated a Neutral rating with a $105 price target
Goldman Sachs reiterated a Neutral rating with a $105 price target
JPMorgan reiterated an Overweight rating with a $110 price target
RBC Capital reiterated an Outperform rating with a $104 price target
Citigroup has a Buy rating with a $114 price target
Deutsche Bank reiterated a Buy rating with a $120 price target
Canaccord Genuity reiterated a Buy rating with a $120 price target
Rosenblatt Securities has a Buy rating with a $120 price target

Shares of Adobe were last trading down 2.6% at $93.71, with a consensus analyst price target of $111.57 and a 52-week trading range of $71.27 to $100.56.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.