The stock of Adobe (ADBE) is up 4% after the design software maker reported financial results that beat Wall Street forecasts.
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For what was its Fiscal third-quarter, Adobe announced earnings per share (EPS) of $5.31, which topped the $5.18 that had been the consensus expectation of analysts. Revenue in the period totaled $5.99 billion, which beat the $5.91 billion that was forecast on Wall Street. Sales were up 11% from a year earlier.
In terms of guidance, Adobe’s management team said it expects earnings of $5.35 to $5.40 in the current quarter. That’s ahead of the average analyst estimate of $5.34. Adobe’s revenue guidance for Fiscal Q4 is $6.08 billion to $6.13 billion, which beat the $6.08 billion that analysts had penciled in for the company.
Adobe’s earnings per share. Source: Main Street Data
Segment Breakdown
Breaking Adobe’s outlook down by segment, management said it expects revenue in the digital media business to increase 11.3% for the fiscal year, up from a previous forecast of 11% growth.
Digital media revenue for the Fiscal fourth quarter is projected at $4.51 billion to $4.56 billion, beating the $4.51 billion average estimate among analysts. The latest print and bullish outlook come at an important time for Adobe, with its share price down 21% on the year.
Is ADBE Stock a Buy?
The stock of Adobe has a consensus Moderate Buy rating among 30 Wall Street analysts. That rating is based on 22 Buy, six Hold, and two Sell recommendations issued in the last three months. The average ADBE price target of $478 implies 36% upside from current levels. These ratings could change after the company’s financial results.
