What Analysts Are Saying About Adobe After Earnings

By Chris Lange Updated Jan 30, 7:31PM EST · Published Jun 19, 10:32AM EDT

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Adobe Inc. (NASDAQ: ADBE | ADBE Price Prediction) released its fiscal second-quarter financial results after the markets closed on Tuesday. Although the stock only made a handy gain in response to earnings, analysts were fairly positive on the stock.

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

The firm posted $1.83 in earnings per share (EPS) and $2.74 billion in revenue, compared with consensus estimates that called for $1.78 in EPS and $2.7 billion in revenue. The same period from last year had $1.66 in EPS and $2.2 billion in revenue.

During the quarter, revenue for the digital media segment was $1.89 billion, which represents 22% year-over-year growth. Creative revenue grew to $1.59 billion and the document cloud division achieved revenue of $296 million. The company’s digital media annualized recurring revenue (ARR) grew to $7.47 billion exiting the quarter, a quarter-over-quarter increase of $406 million. Creative ARR grew to $6.55 billion, and document cloud ARR rose to $921 million.

Separately, revenue for the digital experience segment was $784 million, representing 34% year-over-year growth.

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Looking ahead to the fiscal third quarter, the company expects to see EPS of roughly $1.95 and total revenues of $2.80 billion. Consensus estimates are calling for $2.05 in EPS and $2.83 billion in revenue for the coming quarter.

Here’s what some analysts wrote about Adobe:

Credit Suisse reiterated an outperform rating and raised its price target to $325 from $300.
Barclays reiterated an overweight rating and raised its price target to $330 from $304.
Wedbush reiterated a neutral rating and raised its price target to $290 from $270.
Canaccord Genuity reiterated a buy rating and raised its price target to $320 from $300.
Stephens upgraded to an overweight rating from equal weight.
JPMorgan has a neutral rating and raised its price target to $329 from $284.
BMO Capital Markets reiterated an outperform rating and raised its price target to $315 from $300.
Wells Fargo reiterated a hold rating and raised its price target to $270 from $250.

Shares of Adobe were last seen up about 3% at $285.46, with a 52-week range of $204.95 to $291.71. The stock has a consensus analyst price target of $296.81.

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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.