Adobe reported fiscal fourth-quarter earnings that exceeded analysts’ expectations.
For the quarter ended Nov. 29, the software behemoth’s adjusted earnings came in at $2.29, compared to the $2.26 expected by analysts polled by FactSet. The figure is also higher than the year-ago quarter’s $1.83.
Revenue climbed +21% to $2.99 billion, also surpassing estimates of $2.97 billion.
For the fiscal first quarter, Adobe expects non-GAAP earnings to come in at $2.23 a share – in line with the FactSet-derived consensus estimate. The company has estimated revenue to be $3.04 billion, compared to analysts’ expectation of $3.09 billion.
Looking ahead, Adobe projects full-year fiscal 2020 adjusted earnings of $9.75 a share, compared to consensus estimate of $9.76. It predicts the year's revenue to be $13.15 billion, close to the consensus estimate of $13.16 billion.
John Murphy, executive vice president and CFO, indicated that the company is bullish about opportunities and ability to continue to deliver strong top- and bottom-line growth.
The Moving Average Convergence Divergence (MACD) for ADBE turned positive on October 14, 2024. Looking at past instances where ADBE's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ADBE's RSI Oscillator exited the oversold zone, of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 53 cases where ADBE's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ADBE advanced for three days, in of 344 cases, the price rose further within the following month. The odds of a continued upward trend are .
ADBE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Momentum Indicator moved below the 0 level on October 16, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on ADBE as a result. In of 80 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
ADBE moved below its 50-day moving average on September 13, 2024 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ADBE crossed bearishly below the 50-day moving average on September 19, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 16 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ADBE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for ADBE entered a downward trend on October 16, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ADBE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (14.556) is normal, around the industry mean (30.847). P/E Ratio (47.957) is within average values for comparable stocks, (161.895). Projected Growth (PEG Ratio) (1.863) is also within normal values, averaging (2.738). Dividend Yield (0.000) settles around the average of (0.083) among similar stocks. P/S Ratio (11.534) is also within normal values, averaging (56.884).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to slightly better than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of software solutions for web and print publishing
Industry PackagedSoftware