Adobe (NASDAQ:ADBE) Issues Q2 2023 Earnings Guidance

Adobe (NASDAQ:ADBE – Get Rating) updated its second quarter 2023 earnings guidance on Wednesday. The company provided EPS guidance of $3.75-$3.80 for the period, compared to the consensus EPS estimate of $3.76. The company issued revenue guidance of $4.75 billion-$4.78 billion, compared to the consensus revenue estimate of $4.76 billion. Adobe also updated its FY 2023 guidance to $15.30-$15.60 EPS.

Wall Street Analyst Weigh In

Several analysts have issued reports on the company. Deutsche Bank Aktiengesellschaft upped their target price on Adobe from $400.00 to $430.00 and gave the company a buy rating in a report on Friday, December 16th. Wolfe Research dropped their target price on Adobe from $440.00 to $420.00 in a report on Thursday. DA Davidson started coverage on Adobe in a report on Tuesday, January 17th. They issued a neutral rating and a $350.00 target price for the company. Stifel Nicolaus upped their price target on Adobe from $375.00 to $400.00 in a research note on Friday, December 16th. Finally, Credit Suisse Group upped their price target on Adobe from $325.00 to $350.00 and gave the company a neutral rating in a research note on Friday. Sixteen analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock has a consensus rating of Hold and an average price target of $415.70.

Adobe Price Performance

Shares of NASDAQ ADBE opened at $358.14 on Friday. The stock’s 50-day moving average is $353.24 and its two-hundred day moving average is $334.18. The company has a debt-to-equity ratio of 0.26, a current ratio of 1.11 and a quick ratio of 1.11. Adobe has a 1-year low of $274.73 and a 1-year high of $473.49. The company has a market cap of $164.24 billion, a price-to-earnings ratio of 35.46, a price-to-earnings-growth ratio of 2.08 and a beta of 1.27.

Adobe (NASDAQ:ADBE – Get Rating) last issued its quarterly earnings results on Wednesday, March 15th. The software company reported $3.80 earnings per share for the quarter, topping the consensus estimate of $3.68 by $0.12. Adobe had a return on equity of 36.74% and a net margin of 27.01%. The company had revenue of $4.66 billion for the quarter, compared to the consensus estimate of $4.62 billion. During the same quarter in the prior year, the business earned $2.84 EPS. Adobe’s revenue was up 9.2% on a year-over-year basis. Analysts forecast that Adobe will post 12.15 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Dana Rao sold 5,018 shares of the stock in a transaction dated Tuesday, December 20th. The stock was sold at an average price of $336.93, for a total value of $1,690,714.74. Following the transaction, the executive vice president now owns 14,832 shares in the company, valued at approximately $4,997,345.76. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. In other news, CAO Mark S. Garfield sold 132 shares of the stock in a transaction dated Monday, December 19th. The stock was sold at an average price of $338.00, for a total value of $44,616.00. Following the transaction, the chief accounting officer now owns 3,271 shares in the company, valued at approximately $1,105,598. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Dana Rao sold 5,018 shares of the stock in a transaction dated Tuesday, December 20th. The shares were sold at an average price of $336.93, for a total value of $1,690,714.74. Following the completion of the transaction, the executive vice president now owns 14,832 shares in the company, valued at approximately $4,997,345.76. The disclosure for this sale can be found here. Insiders have sold a total of 26,265 shares of company stock worth $9,067,344 in the last quarter. 0.24% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Financial Freedom LLC purchased a new position in Adobe during the 4th quarter worth approximately $29,000. Fortis Capital Advisors LLC acquired a new stake in Adobe during the 4th quarter worth approximately $35,000. MayTech Global Investments LLC acquired a new stake in Adobe during the 4th quarter worth approximately $59,000. Sanctuary Wealth Management L.L.C. acquired a new stake in Adobe during the 4th quarter worth approximately $69,000. Finally, Worth Asset Management LLC acquired a new stake in Adobe during the 1st quarter worth approximately $101,000. Hedge funds and other institutional investors own 79.36% of the company’s stock.

Adobe Company Profile

(Get Rating)

Adobe, Inc engages in the provision of digital marketing and media solutions. It operates through the following segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers creative cloud services, which allow members to download and install the latest versions of products, such as Adobe Photoshop, Adobe Illustrator, Adobe Premiere Pro, Adobe Photoshop Lightroom and Adobe InDesign, as well as utilize other tools, such as Adobe Acrobat.