Inside Adobe's Earnings: 3 Analysts On Stock Potential As Market Awaits Report

Shares of Photoshop and Acrobat Reader developer Adobe Inc (NASDAQ: ADBE) are trading half-a-point lower ahead of its earnings Wednesday, which are expected to be issued after the closing bell.

Here’s what investors need to know.

By The Numbers: Analysts expect Adobe to issue earnings of $3.68 per share, a modest growth over the $3.37 per share it issued in the same quarter one year ago, on revenues of $4.62 billion, according to Benzinga Pro.

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Last quarter, Adobe beat Street estimates with total bookings growing 10% year-over-year to $4.53 billion.

Its growth can be attributed to a 10% increase in digital media and a 14% surge in digital experience units. The digital media segment saw an 8% rise in creative cloud, with a 16% boost in the document cloud sub-segment.

Analysts at Trefis expect Adobe’s first-quarter results to be on similar lines.

What do other analysts think?

• BMO Capital's Keith Bachman maintains a Market Perform rating and raised the price target from $390 to $395.
• Wolfe Research's Alex Zukin reiterated an Outperform rating, raising the price target from $400 to $440.
• UBS analyst Karl Keirstead maintains a Neutral rating, increasing the price target from $350 to $400.

Check out more analyst ratings here.

Price action: Shares of Adobe are trading 0.5% lower to $332, according to Benzinga Pro.