[ad_1]
As we look ahead to the 2023 Q1 season, one thing is sure – the 2022 Q4 season wasn’t nearly as bad as feared.
Many companies posted better-than-expected results, helping to keep the market afloat.
However, there are still some notable quarterly prints coming soon, including that from Adobe ADBE.
Adobe is one of the biggest software companies in the world, generating the bulk of its revenue via licensing fees from its customers.
How does the company stack up heading into its quarterly print? Let’s take a closer look.
Key Metric
Investors should keep tabs on a critical metric: the company’s Subscription revenue.
For the quarter, the Zacks Consensus Estimate for Subscription revenue stands firm at $4.3 billion, indicating a positive change of more than 10% year-over-year.
Adobe has consistently exceeded expectations within this metric, as seen in the chart below.
Image Source: Zacks Investment Research
Share Performance
ADBE shares have experienced rollercoaster price action in 2023 so far, up a marginal 0.5% and underperforming relative to the S&P 500.
Image Source: Zacks Investment Research
And over the last six months, the story has remained the same, with ADBE shares again underperforming relative to the S&P 500.
Image Source: Zacks Investment Research
Quarterly Estimates
Analysts have been silent for the quarter to be reported, with zero earnings estimate revisions hitting the tape over the last several months. The Zacks Consensus EPS Estimate of $3.66 indicates an improvement of 8% year-over-year.
Image Source: Zacks Investment Research
Our consensus revenue estimate stands at $4.6 billion, indicating a climb of 8.3% year-over-year.
Quarterly Performance
Adobe sports a stellar earnings track record, exceeding both earnings and revenue estimates in ten consecutive quarters.
Just in its latest release, the tech giant delivered a 3% bottom line beat and reported revenue modestly above expectations. Below is a chart illustrating the company’s revenue on a quarterly basis.
Image Source: Zacks Investment Research
Putting Everything Together
Adobe shares have underperformed relative to the S&P 500 across several timeframes, but remain marginally in the green year-to-date.
Within the release, a key metric for investors to watch closely is the company’s subscription revenue, a metric that Adobe has consistently positively surprised on.
Further, analysts have been silent for the quarter to be reported, with estimates suggesting year-over-year growth in both earnings and revenue.
Heading into the release, Adobe ADBE is currently a Zacks Rank #3 (Hold).
Just Released: Zacks Top 10 Stocks for 2023
In addition to the investment ideas discussed above, would you like to know about our 10 top picks for 2023?
From inception in 2012 through November, the Zacks Top 10 Stocks portfolio has tripled the market, gaining an impressive +884.5% versus the S&P 500’s +287.4%. Our Director of Research has now combed through 4,000 companies covered by the Zacks Rank and handpicked the best 10 tickers to buy and hold in 2023. Don’t miss your chance to still be among the first to get in on these just-released stocks.
Adobe Inc. (ADBE) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
[ad_2]
Image and article originally from www.nasdaq.com. Read the original article here.