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ADOBE (ADBE) TO REPORT Q1 EARNINGS: WHAT'S IN THE OFFING?

Zacks Equity Research March 11, 2024

ADBE Quick QuoteADBE ADCT Quick QuoteADCT ALPN Quick QuoteALPN REKR Quick
QuoteREKR

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Adobe Inc. (ADBE Quick QuoteADBE - Free Report) is set to report first-quarter
fiscal 2024 results on Mar 14.

For the fiscal first quarter, the company expects non-GAAP earnings of
$5.10-$5.15 per share. The Zacks Consensus Estimate for earnings is pegged at
$5.13 per share, indicating growth of 10.3% from the year-ago reported figure.

Adobe projects total revenues between $4.35 billion and $4.40 billion. The
consensus mark for the same is pegged at $4.38 billion, implying growth of 15.3%
from the year-ago reported figure.

The company surpassed the Zacks Consensus Estimate in the trailing four
quarters, the average earnings surprise being 3.42%.






ADOBE INC. PRICE AND EPS SURPRISE

 









Adobe Inc. price-eps-surprise | Adobe Inc. Quote







FACTORS TO CONSIDER

Solid momentum across the Digital Media and Digital Experience segments is
likely to have driven top-line growth for the company in the to-be-reported
quarter.

Robust Creative Cloud and Document Cloud are expected to have contributed well
to the performance of the Digital Media segment in the fiscal first quarter.
Adobe expects Digital Media revenues between $3.77 and $3.80 billion. The Zacks
Consensus Estimate for the same is pegged at $3.78 billion, indicating
year-over-year growth of 11.5%.

Growing momentum across the Adobe Express platform and benefits from the
Frame.io acquisition are expected to have accelerated growth in Creative
revenues in the quarter under review. Also, Adobe’s solid momentum in generative
AI on the back of Firefly is likely to have been a major positive.

Strength across the Document Cloud enterprise business and Acrobat ecosystem is
anticipated to have contributed well to Document Cloud revenues. The growing
demand for PDF collaboration services is expected to have been a tailwind.

Growing Adobe Experience Cloud subscriptions on the heels of the rising adoption
of Adobe Marketing Cloud, Adobe Analytics Cloud and Adobe Advertising Cloud is
likely to have benefited Adobe’s Digital Experience segment in the quarter under
review.

Strong demand for AEP and native apps and solid momentum across Data & Insights,
Content and Workfront solutions are anticipated to have benefited the segment’s
quarterly performance.

The company expects Digital Experience revenues between $1.27 and $1.29 billion.
The Zacks Consensus Estimate for the same is pegged at $1.27 billion, indicating
year-over-year growth of 8.2%.




However, the impacts of ongoing tensions between Russia and Ukraine are likely
to have continued acting as headwinds in the quarter to be reported.




WHAT OUR MODEL SAYS

Our proven model does not conclusively predict an earnings beat for Adobe this
time around. The combination of a positive Earnings ESP and a Zacks Rank #1
(Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Adobe has an Earnings ESP of -0.19%. You can uncover the best stocks to buy or
sell before they are reported with our Earnings ESP Filter.

ADBE currently has a Zacks Rank #2.




STOCKS TO CONSIDER

Here are some stocks worth considering that, per our model, have the right
combination of elements to beat on earnings this reporting cycle.

Rekor Systems (REKR Quick QuoteREKR - Free Report) has an Earnings ESP of +5.72%
and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks
#1 Rank stocks here.

Rekor System’s shares have declined 33% year to date. REKR is set to report its
fourth-quarter 2023 results on Mar 25.

ADC Therapeutics (ADCT Quick QuoteADCT - Free Report) has an Earnings ESP of
+57.5% and a Zacks Rank of 3 at present.

ADC Therapeutics shares have gained 171.1% year to date. ADCT is set to report
its fourth-quarter 2023 results on Mar 13.

Alpine Immune Sciences (ALPN Quick QuoteALPN - Free Report) has an Earnings ESP
of +8.57% and a Zacks Rank #3.

Alpine Immune Sciences shares have returned 88.5% year to date. ALPN is set to
release its fourth-quarter fiscal 2023 results on Mar 18.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.



5 Stocks Set to Double

Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or
more in 2023. Previous recommendations have soared +143.0%, +175.9%, +498.3% and
+673.0%.

Most of the stocks in this report are flying under Wall Street radar, which
provides a great opportunity to get in on the ground floor.

Today, See These 5 Potential Home Runs >>








SEE MORE ZACKS RESEARCH FOR THESE TICKERS



NORMALLY $25 EACH - CLICK BELOW TO RECEIVE ONE REPORT FREE:


Adobe Inc. (ADBE) - free report >>

ADC Therapeutics SA (ADCT) - free report >>

Alpine Immune Sciences, Inc. (ALPN) - free report >>

Rekor Systems, Inc. (REKR) - free report >>


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