Adobe Inc.
ADBE
is set to report first-quarter fiscal 2022 results on Mar 22.
For the fiscal first quarter, the company expects non-GAAP earnings of $3.35 per share. The Zacks Consensus Estimate for earnings is pegged at $3.34 per share, indicating growth of 6.4% from the year-ago reported figure.
Adobe projects total revenues of $4.23 billion. The consensus mark for the same is pegged at $4.23 billion, implying growth of 8.3% from the year-ago reported figure.
The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the earnings surprise being 6.17%, on average.
Factors to Consider
Solid momentum across Digital Media and Digital Experience segments is likely to have driven top-line growth in the to-be-reported quarter.
Robust Creative Cloud and Document Cloud are expected to have contributed well to the performance of the Digital Media segment in the fiscal first quarter. Adobe expects Digital Media revenues to grow 8% year over year in the fiscal first quarter.
The growing adoption of Adobe Lightroom, Photoshop and creative mobile applications is expected to have accelerated growth in Creative revenues in the quarter under review.
The increasing uptake of Acrobat and strong momentum across Acrobat Web services are anticipated to have contributed well to the Document Cloud revenues.
The increasing demand for data and insights, content and personalization, customer journey management, commerce, and advertising are expected to have benefited the company’s performance in the to-be-reported quarter.
Apart from Digital Media, Adobe’s strength in the Digital Marketing business is expected to have continued driving its top-line growth in the soon-to-be-reported quarter.
Strong momentum across Adobe Experience Cloud on the heels of the rising adoption of Adobe Marketing Cloud, Adobe Analytics Cloud and Adobe Advertising Cloud is expected to have benefited Adobe’s business in the quarter under review.
The company anticipates Digital Experience revenues to grow 11% on a year-over-year basis. Digital Experience subscription revenues are likely to increase 16% year over year.
However, lower end-market demand is anticipated to have been an overhang. Further, the impacts of high acquisition expenses are expected to get reflected in the upcoming results of the company.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Adobe this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Adobe has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold).
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings.
Advanced Micro Devices
AMD
currently sports a Zacks Rank #1 and has an Earnings ESP of +1.46%. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Advanced Micro Devices is expected to release first-quarter fiscal 2022 results on Apr 26. The Zacks Consensus Estimate for AMD’s earnings is pegged at 91 cents per share, indicating a 75% rise from the year-ago reported number.
Apple
AAPL
has an Earnings ESP of +3.93% and a Zacks Rank #1 at present.
Apple is expected to release second-quarter fiscal 2022 results on Apr 27. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $1.43 per share, which suggests an increase of 2.14% from the prior-year reported figure.
Alphabet
GOOGL
has an Earnings ESP of +8.62% and a Zacks Rank of 3 at present.
Alphabet is expected to release first-quarter 2022 results on Apr 26. The Zacks Consensus Estimate for GOOGL’s earnings is pegged at $25.64 per share.
Stay on top of upcoming earnings announcements with the
Zacks Earnings Calendar
.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”
Since 1988, the full list has beaten the market more than 2X over with an average gain of +25.4% per year. So be sure to give these hand-picked 7 your immediate attention.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
