U.S. markets closed
  • S&P 500

    4,411.79
    +44.31 (+1.01%)
     
  • Dow 30

    35,061.55
    +238.20 (+0.68%)
     
  • Nasdaq

    14,836.99
    +152.39 (+1.04%)
     
  • Russell 2000

    2,209.65
    +10.17 (+0.46%)
     
  • Crude Oil

    72.17
    +0.26 (+0.36%)
     
  • Gold

    1,802.10
    -3.30 (-0.18%)
     
  • Silver

    25.24
    -0.14 (-0.56%)
     
  • EUR/USD

    1.1770
    -0.0003 (-0.02%)
     
  • 10-Yr Bond

    1.2860
    +0.0210 (+1.66%)
     
  • GBP/USD

    1.3754
    -0.0013 (-0.10%)
     
  • USD/JPY

    110.5100
    +0.3950 (+0.36%)
     
  • BTC-USD

    33,628.56
    +908.40 (+2.78%)
     
  • CMC Crypto 200

    786.33
    -7.40 (-0.93%)
     
  • FTSE 100

    7,027.58
    +59.28 (+0.85%)
     
  • Nikkei 225

    27,548.00
    +159.80 (+0.58%)
     

Adobe (ADBE) to Report Q2 Earnings: What's in the Cards?

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Adobe Inc. ADBE is set to report fiscal second-quarter 2021 results on Jun 17.

For the fiscal second quarter, the company expects non-GAAP earnings of $2.81 per share. The Zacks Consensus Estimate for earnings is pegged at $2.81 per share, indicating a growth of 14.7% from the year-ago reported figure.

Further, the company projects total revenues of $3.72 billion. The consensus mark for the same is pegged at $3.73 billion, implying growth of 19.3% from the year-ago reported figure.

The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, the earnings surprise being 7.48%, on average.

Adobe Inc. Price and EPS Surprise

Adobe Inc. Price and EPS Surprise
Adobe Inc. Price and EPS Surprise

Adobe Inc. price-eps-surprise | Adobe Inc. Quote

Factors to Consider

The company’s strong focus on its Digital Media business is likely to have contributed well to the fiscal second-quarter performance.

The growing demand for the company’s Digital Media Solutions along with solid momentum across Creative Cloud and Document Cloud is expected to have benefited the Digital Media business in the to-be-reported quarter.

Moreover, the rising adoption of enterprise services and net new subscriptions are expected tohave been positives.

Further, deepening focus on education is likely to have driven the company’s Creative annualized recurring revenues (ARR) in the quarter under review. Additionally, increased demand for professional video products, given strong engagement for Adobe Premiere Pro and After Effects, is expected to have driven creative revenues.

Furthermore, solid enterprise adoption of Acrobat and Document Cloud services is anticipated tohave driven growth in Document Cloud ARR.

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 Cloudis expected tohave benefited the business in the quarter under review.

The rising work-from-home trend is expected to have led to a further surge in demand for digital documents. Additionally, increasing demand for data and insights, content and personalization, customer journey management, commerce, and advertising are expected to have accelerated revenues in the fiscal second quarter.

What Our Model Says

Our proven model does not conclusively predictan 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.

Stocks to Consider

Here are some stocks to consider as our model shows that these have the right combination of elements to beat on earnings this time around.

FedEx Corporation FDX has an Earnings ESP of +2.78% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

General Mills, Inc. GIS currently has an Earnings ESP of +2.06% and a Zacks Rank of 3.

CarMax, Inc. KMX presently has an Earnings ESP of +5.00% and a Zacks Rank of 3.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>


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

General Mills, Inc. (GIS) : Free Stock Analysis Report

Adobe Inc. (ADBE) : Free Stock Analysis Report

FedEx Corporation (FDX) : Free Stock Analysis Report

CarMax, Inc. (KMX) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research