The upcoming report from Adobe Systems (ADBE) is expected to reveal quarterly earnings of $5.39 per share, indicating an increase of 12.1% compared to the year-ago period. Analysts forecast revenues of $6.1 billion, representing an increase of 8.9% year over year.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Adobe metrics that are commonly monitored and projected by Wall Street analysts.
The consensus estimate for 'Revenue- Digital Media' stands at $4.54 billion. The estimate points to a change of +9.6% from the year-ago quarter.
The combined assessment of analysts suggests that 'Revenue- Digital Experience' will likely reach $1.51 billion. The estimate indicates a change of +7.9% from the prior-year quarter.
Analysts' assessment points toward 'Revenue- Publishing and Advertising' reaching $50.21 million. The estimate indicates a year-over-year change of -22.8%.
The collective assessment of analysts points to an estimated 'Revenue- Services and other' of $143.27 million. The estimate points to a change of -10.5% from the year-ago quarter.
It is projected by analysts that the 'Revenue- Subscription' will reach $5.90 billion. The estimate suggests a change of +10% year over year.
Analysts predict that the 'Revenue- Products' will reach $63.03 million. The estimate indicates a change of -22.2% from the prior-year quarter.
The average prediction of analysts places 'Revenue- Subscription Revenue- Digital Experience' at $1.40 billion. The estimate points to a change of +10.8% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenue- Subscription Revenue- Digital Media' should arrive at $4.41 billion. The estimate indicates a year-over-year change of +8.2%.
Analysts expect 'Revenue- Subscription Revenue- Publishing and Advertising' to come in at $30.87 million. The estimate indicates a change of +14.3% from the prior-year quarter.
The consensus among analysts is that 'Business Unit - Digital Media - Total Digital Media ARR (Annual)' will reach $19.18 billion. The estimate is in contrast to the year-ago figure of $17.22 billion.
View all Key Company Metrics for Adobe here>>>
Adobe shares have witnessed a change of +0.4% in the past month, in contrast to the Zacks S&P 500 composite's +1.3% move. With a Zacks Rank #3 (Hold), ADBE is expected closely follow the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Adobe Inc. (ADBE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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