Adobe Expected To Report Best Quarter Since 2012

Shares of Adobe Systems Incorporated (NASDAQ: ADBE) are down on Monday, ahead of the company’s second quarter financial results, scheduled for after the market closes on Tuesday.

The company guided flat quarter-over-quarter earnings of $0.44 per share on slightly higher revenue of $1.150 billion. However, these estimates imply a year-over-year increase of almost 19 percent in earnings, and roughly 7 percent in sales.

Moreover, Street expectations point toward the best quarter since 2012. Wall Street is modeling earnings of $0.45 per share on revenue of $1.161 billion, while Main Street is projecting earnings of $0.47 per share on revenue of $1.174 billion (Estimize).

Even further, it should be noted from the chart above that Adobe has a history of beating estimates and guidance.

The table above features a history of the company’s actual results and growth rates versus estimates.

Analyst Color

In a report published Monday, Wunderlich analyst Rob Breza previewed Adobe’s earnings, reiterating a Hold rating and a $90.00 price target on the stock.

 "We expect key metrics of subscriber growth and total annual recurring revenue (ARR) of ~620K and $2.3B. During 1Q, Adobe reported weak subscriber growth numbers as a result of experimental bundling and the stock price declined as a result. For 2Q, we expect Adobe will report approximately 15.6% q/q subscriber growth, representing approximately 620k subscribers added," the analyst wrote.