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Photoshop maker Adobe (NASDAQ:ADBE) is scheduled to report fourth-quarter results on Wednesday, December 13, after market close.
Analysts expect earnings per share of $4.14 on revenues of $5.02 billion, which would mark a jump of 10.8%.
Shares of Adobe (ADBE) have soared nearly 87% year-to-date.
The San Jose, California-based company is likely to beat estimates in the fourth-quarter, driven by demand for its generative AI features and recent price hikes. Investors expect Adobe (ADBE) to be conservative and deliver 2024 guidance in-line with expectations.
Citi expects Adobe’s (ADBE) fourth-quarter profitability to outperform due to continued cloud spending optimization, marketing dollar productivity gains, and moderated hiring,
According to JP Morgan, the focus will be on guidance for the coming year. Questions about guidance for Digital Media net new annual recurring revenue, adoption of Firefly, its AI tool for generating images, and margins will be paramount, the brokerage added.
The Creative Cloud maker’s pending $20 billion Figma deal remains under scrutiny. Earlier in November, the European Commission said the proposed deal “may reduce competition in the global markets.” The UK’s antitrust regulator also said the deal would result in a “substantial lessening of competition.”
Seeking Alpha analyst Muhammad Umair noted, “As the company prepares for Q4 2023, it anticipates robust total revenue, aligning with its strong performance in fluctuating economic conditions and capitalizing on seasonal market trends.”
Over the last three months, Adobe has seen significant upgrades to its estimates. Earnings per share forecasts have been revised downwards one time vs. 23 upward revisions, while revenue estimates have seen four downward revisions, compared to 18 upward moves.
Seeking Alpha analysts at large consider Adobe a Hold. This compares with average Wall Street rating of Buy and SA Quant rating of Hold.
