- Adobe’s 1Q adjusted EPS has surpassed estimates, coming in at $4.48 compared to last year’s $3.80 and the estimated $4.38.
- The company’s revenue has increased by 11% year on year, reaching $5.18 billion and beating the estimated $5.14 billion.
- Subscription revenue has also seen a 12% increase year on year, totaling $4.92 billion and surpassing the estimated $4.87 billion.
- Product revenue, however, decreased slightly by 0.8% year on year, totaling $119 million, but it still beat the estimated $114.5 million.
- Research and Development expenses have risen by 14% year on year, reaching $939 million, higher than the estimated $893.5 million.
- Adjusted operating income has increased by 16% year on year, totaling $2.47 billion, which is higher than the estimated $2.4 billion.
- Services and other revenue have seen a decrease of 9.3% year on year, totaling $147 million, which is lower than the estimated $157.7 million.
- The forecast for the second quarter sees an adjusted EPS of $4.35 to $4.40, with an estimate of $4.38.
- The company’s stock performance has been rated with 32 buys, 9 holds, and 2 sells.
Adobe Systems on Smartkarma
Analysts on Smartkarma, an independent investment research network, are closely monitoring Adobe Systems. According to Baptista Research, Adobe Inc. delivered impressive results in the fourth quarter thanks to its pioneering innovations in Creative Cloud and Document businesses. The company’s focus on Creative Cloud has positioned it as the leading platform for content creation globally, generating $3 billion in revenue. Baptista Research also notes that Adobe’s investments in AI have the potential to bring about significant changes in the future.
In another report from Baptista Research, it is highlighted that Adobe Inc. exceeded analyst expectations in terms of revenue and earnings in the third quarter. The company’s success in Digital Media, particularly with Acrobat and PDF solutions, has solidified its position as a key player in the Document Cloud business. With these major drivers, Adobe Inc. is poised to continue leading the way in the market, according to analysts on Smartkarma.
A look at Adobe Systems Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
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
The future looks bright for Adobe Systems as it continues to score well on the Smartkarma Smart Scores. With a score of 3 for growth, the company is expected to continue its upward trajectory in the market. This is supported by its strong score of 4 for resilience, indicating its ability to weather any potential challenges. Additionally, with a score of 3 for momentum, Adobe Systems is showing strong potential for future success. This is in line with the company’s focus on developing and marketing innovative computer software products and technologies.
While its scores for value and dividend are not as high, with scores of 2 and 1 respectively, Adobe Systems is still a solid investment for those looking for long-term growth. As a leader in the market for application software products and content, the company is well-positioned to continue its success in the digital age. Overall, Adobe Systems is a strong and reliable company with a promising outlook for the future.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
