Unlocking Q2 Potential of Adobe (ADBE): Exploring Wall Street Estimates for Key Metrics
The upcoming report from Adobe Systems (ADBE) is expected to reveal quarterly earnings of $4.39 per share, indicating an increase of 12.3% compared to the year-ago period. Analysts forecast revenues of $5.28 billion, representing an increase of 9.7% year over year.
Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
In light of this perspective, let's dive into the average estimates of certain Adobe metrics that are commonly tracked and forecasted by Wall Street analysts.
The consensus estimate for 'Revenue- Digital Media' stands at $3.89 billion. The estimate suggests a change of +10.7% year over year.
The average prediction of analysts places 'Revenue- Publishing and Advertising' at $72.90 million. The estimate points to a change of -12.2% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenue- Digital Experience' should arrive at $1.32 billion. The estimate suggests a change of +8.1% year over year.
It is projected by analysts that the 'Revenue- Digital Media- Creative Cloud' will reach $3.11 billion. The estimate indicates a year-over-year change of +9.2%.
The combined assessment of analysts suggests that 'Revenue- Digital Media- Document Cloud' will likely reach $773.53 million. The estimate indicates a change of +17.4% from the prior-year quarter.
The collective assessment of analysts points to an estimated 'Revenue- Services and other' of $166.54 million. The estimate indicates a year-over-year change of -1.5%.
The consensus among analysts is that 'Revenue- Products' will reach $133.44 million. The estimate indicates a change of +2.6% from the prior-year quarter.
Analysts' assessment points toward 'Digital Experience Subscription Revenue' reaching $1.17 billion. The estimate indicates a year-over-year change of +9.7%.
Analysts forecast 'Net Revenue- Subscription' to reach $4.98 billion. The estimate points to a change of +10.3% from the year-ago quarter.
According to the collective judgment of analysts, 'Business Unit - Digital Media - Creative ARR (Annualized Recurring)' should come in at $13.09 billion. Compared to the current estimate, the company reported $11.64 billion in the same quarter of the previous year.
Analysts predict that the 'Business Unit - Digital Media - Total Digital Media ARR (Annual)' will reach $16.20 billion. The estimate is in contrast to the year-ago figure of $14.14 billion.
Analysts expect 'Business Unit - Digital Media - Document Services ARR (Annual)' to come in at $3.12 billion. Compared to the present estimate, the company reported $2.50 billion in the same quarter last year.
View all Key Company Metrics for Adobe here>>>
Shares of Adobe have experienced a change of -3.5% in the past month compared to the +3.3% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), ADBE is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
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