Adobe Expected To Report Best Quarter Since 2012

Shares of Adobe Systems Incorporated ADBE are down on Monday, ahead of the company’s second quarter financial results, scheduled for after the market closes on Tuesday.

The company guided flat quarter-over-quarter earnings of $0.44 per share on slightly higher revenue of $1.150 billion. However, these estimates imply a year-over-year increase of almost 19 percent in earnings, and roughly 7 percent in sales.

Moreover, Street expectations point toward the best quarter since 2012. Wall Street is modeling earnings of $0.45 per share on revenue of $1.161 billion, while Main Street is projecting earnings of $0.47 per share on revenue of $1.174 billion (Estimize).

Even further, it should be noted from the chart above that Adobe has a history of beating estimates and guidance.

The table above features a history of the company’s actual results and growth rates versus estimates.

Analyst Color

In a report published Monday, Wunderlich analyst Rob Breza previewed Adobe’s earnings, reiterating a Hold rating and a $90.00 price target on the stock.

 "We expect key metrics of subscriber growth and total annual recurring revenue (ARR) of ~620K and $2.3B. During 1Q, Adobe reported weak subscriber growth numbers as a result of experimental bundling and the stock price declined as a result. For 2Q, we expect Adobe will report approximately 15.6% q/q subscriber growth, representing approximately 620k subscribers added," the analyst wrote.