What to Expect When Adobe Reports After the Close

By Chris Lange Updated Jan 30, 3:43PM EST · Published Sep 17, 11:35AM EDT

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What to Expect When Adobe Reports After the Close — © jejim / Shutterstock.com

Adobe Inc. (NASDAQ: ADBE | ADBE Price Prediction) is scheduled to release its fiscal third-quarter financial results after the markets close on Tuesday. The consensus estimates are calling for $1.97 in earning per share (EPS) and $2.82 billion in revenue. The same period from last year reportedly had $1.73 in EPS and $2.29 billion in revenue.

The company previously released guidance calling for EPS of $1.95 and total revenues of $2.80 billion for this quarter.

During the fiscal second quarter, revenue for the digital media segment was $1.89 billion, which represented 22% year-over-year growth. Creative revenue grew to $1.59 billion, and the document cloud division achieved revenue of $296 million.

At the same time, 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.

Overall, Adobe has outperformed the broad markets, with its stock up about 25% year to date. In the past 52 weeks, the stock is only up about 5%.

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A few analysts weighed in on Adobe ahead of the results:

RBC’s Buy rating comes with a $320 price target.
Stephens has a Buy rating and a $327 price target.
Merrill Lynch has a Buy rating with a $323 price target.
Credit Suisse rates it as Outperform with a $325 price target.
Barclays has an Overweight rating and a $330 target price.
Wedbush has a Neutral rating with a $290 target price.

Shares of Adobe were trading at $283.30 on Tuesday, in a 52-week range of $204.95 to $313.11. The consensus price target is $312.92.

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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.