Q2 Preview: Analysts Expect Solid Numbers from Adobe (ADBE) Amid CS6 Shipments, Favorable Currency
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Price: $44.61 +0.11%
Rating Summary:
10 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
10 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade ADBE Now!
Shares of Adobe Systems (Nasdaq: ADBE) are higher in Tuesday afternoon trade as the company will report its second-quarter 2012 results after the market closes. Adobe will be holding a conference call at 5:00pm EDT. To listen in on the webcast, click here.
The Street is looking for 7.3 percent year-over-year EPS growth to 59 cents on revs of $1.11 billion. With its previous earnings report, Adobe guided sales to $1.09 billion to $1.14 billion and EPS to 57 cents to 61 cents.
Over the last six quarters, Adobe has bested consensus expectations by an average of 5.3 percent.
Adding to sentiment Tuesday was Oracle's early fourth-quarter report, which showed some strong numbers and a boosted stock repurchase plan.
Shares of Adobe moved 5.6 percent lower through the quarter, to $31.05 at the end of May. The drop compares to the modest 0.4 percent gain realized in the same period last year. Over the last 52 weeks, Adobe shares have traded within a range of $22.67 to $34.78.
Analyst data from Bloomberg shows 11 analysts at Buy, 14 with a Hold, and three at Sell. The Street's price target average is $35, ranging from $24 to $41.
Adobe shares are breaking above the 50- and 100-day SMAs at $32.32 and $32.69, respectively. Volatility is lower, but still 131 percent above its trailing annual average.
Analyst Comments
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The Street is looking for 7.3 percent year-over-year EPS growth to 59 cents on revs of $1.11 billion. With its previous earnings report, Adobe guided sales to $1.09 billion to $1.14 billion and EPS to 57 cents to 61 cents.
Over the last six quarters, Adobe has bested consensus expectations by an average of 5.3 percent.
Adding to sentiment Tuesday was Oracle's early fourth-quarter report, which showed some strong numbers and a boosted stock repurchase plan.
Shares of Adobe moved 5.6 percent lower through the quarter, to $31.05 at the end of May. The drop compares to the modest 0.4 percent gain realized in the same period last year. Over the last 52 weeks, Adobe shares have traded within a range of $22.67 to $34.78.
Analyst data from Bloomberg shows 11 analysts at Buy, 14 with a Hold, and three at Sell. The Street's price target average is $35, ranging from $24 to $41.
Adobe shares are breaking above the 50- and 100-day SMAs at $32.32 and $32.69, respectively. Volatility is lower, but still 131 percent above its trailing annual average.
Analyst Comments
- Goldman Sachs is modeling non-GAAP EPS of 59 cents on revs of $1.11 billion, seeing less of an impact from currency than when Adobe first issued guidance. The firm noted channel checks which point to results coming in at the upper-end of guidance, given CS6 launch data, Efficient Frontier acquisition, and currency data.
- Wells Fargo is looking for EPS of 59 cents and revs of $1.1 billion. The firm attributed the outlook to "the gradual nature of transitioning from a product license model to a subscription model." Keys to the transition are deployment methods which differ (SaaS versus on-premise), CS licenses which are being offered for another year, and a digital marketing industry which is still fragmented.
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