- Adobe’s revenue forecast for Q4 2024 is between $5.50 billion to $5.55 billion, slightly below the $5.6 billion estimate.
- Adjusted earnings per share (EPS) for Q4 2024 are projected between $4.63 to $4.68, with an estimate matching the upper limit of $4.68.
- Digital media revenue for Q4 2024 is forecasted between $4.09 billion to $4.12 billion, against an estimate of $4.14 billion.
- Digital experience revenue is expected to be between $1.36 billion to $1.38 billion, under the $1.4 billion estimate.
- Digital experience subscription revenue is projected to be between $1.23 billion to $1.25 billion, close to the $1.24 billion estimate.
- For the third quarter of 2024, Adobe’s adjusted EPS was $4.65, beating the estimate of $4.53 and up from $4.09 year-over-year (y/y).
- Revenue for the third quarter was $5.41 billion, up 11% y/y, surpassing the $5.37 billion estimate.
- Digital media revenue for the third quarter was $4.00 billion, a 11% y/y increase, slightly above the $3.97 billion estimate.
- Third-quarter subscription revenue was $5.18 billion, up 12% y/y, exceeding the $5.13 billion estimate.
- Product revenue for the third quarter was $82 million, down 15% y/y, below the $103.1 million estimate.
- Remaining performance obligations stood at $18.14 billion, up 15% y/y, but slightly below the $18.26 billion estimate.
- Research and Development expenses were $1.02 billion, a 16% y/y increase, above the $980.7 million estimate.
- Adjusted operating income for the third quarter was $2.52 billion, up 11% y/y, beating the $2.47 billion estimate.
- Services and other revenue came in at $146 million, a 10% decrease y/y, but higher than the $144.6 million estimate.
- Adobe shares fell 2.5% in post-market trading to $572.00 on 8,548 shares traded.
- Analysts’ ratings include 36 buys, 8 holds, and 3 sells.
Adobe Systems on Smartkarma
Analyst coverage of Adobe Systems on Smartkarma showcases positive insights from Baptista Research. In the report titled “Adobe Inc.: Sustainable AI Integration & Generative Tools Development – Major Drivers” by Baptista Research, Adobe’s strong financial performance in the second quarter of fiscal year 2024 is highlighted. With a total revenue of $5.31 billion and earnings per share showing growth on both GAAP and non-GAAP basis, the report emphasizes Adobe’s solid operational execution and increasing product demand across customer segments.
Another report by Baptista Research, “Adobe Inc.: When Will Its Adoption Of Generative AI Reflect On Its Top-Line? – Major Drivers,” delves into Adobe’s robust financial outcomes in the first quarter of fiscal year 2024. The company’s revenue of $5.18 billion, coupled with notable year-over-year growth, underlines the vital role of Adobe products in driving the global digital economy. The report also highlights strong earnings per share figures, both on GAAP and non-GAAP basis, indicating an impressive 18% growth compared to the previous year.
A look at Adobe Systems Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores for Adobe Systems, the company shows a mixed long-term outlook across different factors. While it excels in momentum with a top score of 5, suggesting strong positive market performance in the future, its dividend score is lower at 1, indicating limited returns to shareholders in terms of dividends.
Moreover, Adobe Systems scores moderately in value with a score of 2, indicating potential for investors seeking companies with fair pricing. The company also demonstrates good growth prospects with a score of 3 and resilience with a score of 4, showing strength in its ability to endure challenges and sustain operations. Overall, Adobe Systems seems positioned for continued growth but may not appeal as much to income-focused investors due to its lower dividend score.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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