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Tech Earnings Expectations: Adobe Vs. Oracle

Nelson Hem
  • Reports from two software giant will be earnings highlights this week.
  • Wall Street analysts expect earnings growth from only one of them.
  • However, top-line growth is anticipated from both.

The fourth-quarter earnings reporting season has wrapped up and the first-quarter reports aren't due for weeks. There are only a handful of companies expected to share their latest results this week, including enterprise software giants Adobe Systems Incorporated (NASDAQ: ADBE) and Oracle Corporation (NYSE: ORCL).

The Wall Street consensus forecast calls for the former to show strong growth on the top and bottom lines for the period in which it announced the 2017 release of Adobe Technical Communication Suite. Meanwhile, the latter is expected to post mixed results, as its restructuring results in layoffs.

Adobe

When this Photoshop maker shares its fiscal first-quarter results after the closing bell on Thursday, analysts on average predict it will post $0.87 per share in earnings. That compares to the $0.90 per share in the prior quarter and $0.66 a year ago. And the $1.65 billion in expected revenue would be up about 19 percent year over year. Note that earnings per share topped consensus estimates by at least 4 percent in the previous four quarters.

The forecast from 68 Estimize respondents is about the same on the bottom line, with EPS expected to come in at $0.88. That would be the second highest level in the past two years. And the consensus revenue estimate for the three months that ended in February is also $1.65 billion. However, Estimize narrowly underestimated the top line in the past two quarters.

View more earnings on ADBE

See also: Salesforce And Why This Is The Year Of 'Einstein'

Oracle

Wall Street's consensus forecast calls for EPS at the second-largest software maker by revenue to have slipped from $0.64 in the same period of last year to $0.62. The 117 Estimize respondents have a consensus estimate of $0.63 per share for the three months that ended in February. However, EPS fell short of Estimize expectations in the previous three periods.

Estimize also overestimated revenue in the previous quarter, and this time the respondents are looking for $9.23 billion. That would be up from the $9.01 billion reported in the year-ago quarter, and it also compares with the Wall Street consensus forecast of $9.25 billion. Look for Oracle to share its fiscal third-quarter results first thing Wednesday.

And Others

Also this week, Wall Street anticipates earnings growth from Dollar General and DSW. But if the analysts are correct, Guess, Jabil Circuit, Tiffany and Williams-Sonoma will report at least some decline on the bottom line.

The following week, earnings reports continued to trickle out, but keep an eye out for those from FedEx, GameStop, General Mills, Micron Technology, Nike, Petrobras and Sears.

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