Adobe reported second quarter earnings that were higher than what analysts’ expected. Revenue, too, topped analysts’ estimates.
The software company’s adjusted earnings during the quarter ended June 3 came in at $3.35 per share, compared to the $3.31 per share expected by analysts, according to Refinitiv.
Revenue rose +14% from the year-ago quarter to $4.39 billion ,also exceeding analysts’ expectations of $4.34 billion.
Revenue from Adobe's Digital Media segment (which includes Creative Cloud and Document Cloud products) grew 15% to $3.20 billion, higher than the StreetAccount consensus estimate of $3.16 billion.
The Digital Experience business revenue rose +17% to $1.10 billion, above the $1.08 billion StreetAccount consensus.
For the full fiscal year, Adobe lowered its forecast to $13.50 in adjusted earnings per share (vs. December guidance of $13.70 ). Its revenue guidance is now $17.65 billion (vs. December guidance of $17.90 billion).
The company mentioned that the war in Ukraine posed a $175 million foreign-exchange headwind.
On April 24, 2024, the Stochastic Oscillator for ADBE moved out of oversold territory and this could be a bullish sign for the stock. Traders may want to buy the stock or buy call options. Tickeron's A.I.dvisor looked at 55 instances where the indicator left the oversold zone. In of the 55 cases the stock moved higher in the following days. This puts the odds of a move higher at over .
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where ADBE's RSI Indicator exited the oversold zone, of 20 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for ADBE just turned positive on April 16, 2024. Looking at past instances where ADBE's MACD turned positive, the stock continued to rise in of 47 cases 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 349 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved below the 0 level on April 02, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on ADBE as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 50-day moving average for ADBE moved below the 200-day moving average on April 10, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
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 April 25, 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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding 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 90, 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 (29.955). P/E Ratio (47.957) is within average values for comparable stocks, (155.220). Projected Growth (PEG Ratio) (1.863) is also within normal values, averaging (2.725). Dividend Yield (0.000) settles around the average of (0.081) among similar stocks. P/S Ratio (11.534) is also within normal values, averaging (55.388).
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