Adobe shares climbed +6% in after-hours trading on Thursday, after the software giant announced its fiscal fourth-quarter earnings that surpassed analysts’ expectations. The company also provided a better-than-expected outlook.
Adjusted earnings for the quarter ending Dec. 2 came in at $3.60 per share, beating the $3.50 per share expected by analysts.
Revenue grew +10% from the year-ago quarter to $4.53 billion, vs. $4.53 billion expected by the Street.
Adobe’s Digital Media segment, which includes Creative Cloud design software subscriptions, generated $3.30 billion in revenue, falling shy of the StreetAccount consensus of $3.31 billion (as reported in CNBC). The Digital Experience business, which includes Adobe’s marketing software, garnered $1.15 billion in revenue, topping the $1.14 billion StreetAccount consensus (as reported in CNBC).
For the fiscal first quarter, Adobe is expecting adjusted earnings of $3.65 to $3.70 per share, compared to analysts’ forecast of $3.64 per share. The company has projected revenue in the range of on $4.60 billion to $4.64 billion, vs. analysts’ expectations of $4.64 billion. (The forecasts don’t include impact from the Figma deal. Adobe said, during the quarter, that it would acquire design software startup Figma for about $20 billion).
Looking further ahead, Adobe projects full-year earnings of $15.15 to $15.45 a share on revenue of $19.1 billion to $19.3 billion, while analysts polled by FactSet expected $15.33 a share on revenue of $19.35 billion. The company expects new Digital Media ARR of about $1.65 billion versus the Street expectations of $1.75 billion.
ADBE saw its Momentum Indicator move above the 0 level on May 17, 2023. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 88 similar instances where the indicator turned positive. In of the 88 cases, the stock moved higher in the following days. The odds of a move higher are at .
The Moving Average Convergence Divergence (MACD) for ADBE just turned positive on May 18, 2023. Looking at past instances where ADBE's MACD turned positive, the stock continued to rise in of 49 cases over the following month. The odds of a continued upward trend are .
ADBE moved above its 50-day moving average on May 25, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ADBE crossed bullishly above the 50-day moving average on May 26, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. 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 348 cases, the price rose further within the following month. The odds of a continued upward trend are .
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
ADBE broke above its upper Bollinger Band on May 25, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for ADBE entered a downward trend on May 23, 2023. 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. ADBE’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 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 89, placing this stock slightly better than average.
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 (13.495) is normal, around the industry mean (31.526). P/E Ratio (41.152) is within average values for comparable stocks, (167.679). Projected Growth (PEG Ratio) (1.799) is also within normal values, averaging (4.163). Dividend Yield (0.000) settles around the average of (0.040) among similar stocks. P/S Ratio (10.846) is also within normal values, averaging (75.236).
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
A.I.dvisor indicates that over the last year, ADBE has been closely correlated with ADSK. These tickers have moved in lockstep 71% of the time. This A.I.-generated data suggests there is a high statistical probability that if ADBE jumps, then ADSK could also see price increases.
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