Financial Performance - Adobe reported $5.41 billion in revenue for the quarter ended August 2024, a 10.6% year-over-year increase [1] - EPS for the quarter was $4.65, compared to $4.09 a year ago [1] - Revenue surpassed the Zacks Consensus Estimate of $5.37 billion by 0.79% [1] - EPS exceeded the consensus estimate of $4.53 by 2.65% [1] Business Unit Metrics - Digital Media - Creative ARR (Annualized Recurring) was $13.45 billion, slightly below the five-analyst average estimate of $13.46 billion [2] - Digital Media - Total Digital Media ARR (Annual) was $16.76 billion, compared to the $16.71 billion average estimate [2] - Digital Media - Document Services ARR (Annual) was $3.31 billion, exceeding the four-analyst average estimate of $3.25 billion [2] Revenue Breakdown - Digital Media revenue was $4 billion, a 11.2% year-over-year increase, slightly above the $3.97 billion average estimate [2] - Publishing and Advertising revenue was $59 million, a 11.9% year-over-year decrease, below the $60.35 million average estimate [2] - Digital Experience revenue was $1.35 billion, a 10.2% year-over-year increase, slightly above the $1.34 billion average estimate [2] - Digital Media - Creative Cloud revenue was $3.19 billion, a 9.6% year-over-year increase, slightly above the $3.18 billion estimate [2] - Digital Media - Document Cloud revenue was $807 million, a 17.8% year-over-year increase, exceeding the $790.70 million estimate [2] - Services and other revenue was $146 million, a 10.4% year-over-year decrease, below the $163.69 million estimate [2] - Products revenue was $82 million, a 14.6% year-over-year decrease, below the $111.98 million estimate [2] - Digital Experience Subscription Revenue was $1.23 billion, a 12.3% year-over-year increase, slightly above the $1.21 billion estimate [2] - Net Revenue - Subscription was $5.18 billion, a 11.9% year-over-year increase, exceeding the $5.09 billion estimate [2] Stock Performance - Adobe shares returned +7.5% over the past month, outperforming the Zacks S&P 500 composite's +4% change [3] - The stock currently has a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Adobe reported fiscal third-quarter earnings and revenue that exceeded expectations, but its fourth-quarter outlook fell short of analysts' estimates, leading to a decline in share price [1][2]. Group 1: Financial Performance - Adobe's third-quarter revenue reached $5.41 billion, representing an 11% year-over-year increase [2]. - The company reported diluted earnings per share (EPS) of $3.76, up from $3.05 a year earlier [2]. - The Digital Media segment achieved record net-new annualized recurring revenue (ARR) of $504 million, an 8% year-over-year rise, surpassing analysts' projections [2]. Group 2: Future Outlook - For the fourth quarter, Adobe anticipates revenue between $5.50 billion and $5.55 billion, which is below analysts' expectations [1]. - The projected diluted EPS for the fourth quarter is between $3.58 and $3.63, with analysts expecting the higher end of that range [1]. Group 3: Market Reaction - Following the earnings report, Adobe shares fell more than 9% in extended trading [2].

Adobe Systems (ADBE) came out with quarterly earnings of $4.65 per share, beating the Zacks Consensus Estimate of $4.53 per share. This compares to earnings of $4.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.65%. A quarter ago, it was expected that this software maker would post earnings of $4.39 per share when it actually produced earnings of $4.48, delivering a surprise of 2.05%.Over the last four quarters, the compa ...

Adobe reported third-quarter results on Thursday that beat Wall Street expectations for sales and earnings, but the stock slid 10% in extended trading on fourth-quarter guidance that came up short.Here's how Adobe did for the quarter ending in August versus LSEG consensus estimates:Revenue: $5.41 billion, vs. $5.37 billion expectedEarnings per share: $4.65, adjusted, vs. $4.53 estimatedAdobe said it expected earnings per share between $4.63 and $4.68 on revenue in the fourth quarter of between $5.5 billion ...

Financial Performance - Adobe reported Q3 revenue of $5.41 billion, representing an 11% year-over-year growth[2] - Net income for the three months ended August 30, 2024, was $1,684 million, an increase of 20% compared to $1,403 million for the same period last year[15] - Non-GAAP operating income reached $2,515 million, up from $2,264 million year-over-year, reflecting a growth of approximately 11.1%[17] - The company reported net cash provided by operating activities of $2,021 million, compared to $1,873 million in the prior year, indicating a year-over-year increase of 7.9%[15] - GAAP diluted net income per share was $3.76, compared to $3.05 for the same period last year, representing a growth of 23.2%[17] - The effective income tax rate for GAAP was 17.5%, while the non-GAAP effective income tax rate was 18.5%[20] - The company expects non-GAAP diluted net income per share for the fourth quarter of fiscal 2024 to be between $4.63 and $4.68[21] Revenue Segments - Digital Media segment revenue was $4.00 billion, also reflecting an 11% year-over-year growth[2] - Document Cloud revenue grew to $807 million, marking an 18% year-over-year increase[2] - Creative revenue increased to $3.19 billion, showing a 10% year-over-year growth[2] Cash Flow and Share Repurchase - Cash flows from operations were reported at $2.02 billion[2] - Adobe repurchased approximately 5.2 million shares during the quarter[2] - The company repurchased $2,500 million of common stock during the period, significantly higher than the $1,000 million repurchased in the same quarter last year[15] Future Projections - Adobe plans to achieve Q4 revenue between $5.50 billion and $5.55 billion[6] - Digital Media net new ARR target for Q4 is approximately $550 million[6] Deferred Revenue and Obligations - Remaining Performance Obligations (RPO) at the end of the quarter were $18.14 billion, growing 15% year-over-year[2] - Changes in deferred revenue increased by $220 million, compared to an increase of $102 million in the prior year[15] Stock-Based Compensation - Stock-based compensation expense was $485 million, up from $448 million year-over-year, reflecting a rise of 8.2%[17]

The much-awaited consumer price index (CPI) reading came out on Wednesday, showing monthly inflation increasing by 0.2% in August, in line with the consensus estimate after rising by a similar margin in July. This somewhat dented investors’ sentiment as many had been expecting a 50-basis point rate cut by the Fed in its September policy meeting.However, the annual inflation rate fell to its lowest level since early 2021, which is being seen as positive news ahead of the rate cuts. Growth assets like tech st ...

Adobe’s (ADBE) third-quarter fiscal 2024 results, scheduled to be released on Sept. 12, are likely to reflect the strength of its Digital Media segment.Digital Media has been the key driver behind the company’s growth, backed by its Creative family of products and Document Services products.The company’s persistent efforts to strengthen its content management capabilities are expected to have continued to drive growth in the Digital Media segment in the to-be-reported quarter.The segment under discussion ge ...

Adobe (ADBE) is scheduled to report its third-quarter fiscal 2024 results on Sept. 12.For the third quarter of fiscal 2024, ADBE projects total revenues between $5.33 billion and $5.38 billion. The Zacks Consensus Estimate for revenues is pegged at $5.37 billion, suggesting growth of 9.7% from the year-ago quarter’s reported figure.Management expects non-GAAP earnings per share between $4.50 and $4.55. The consensus mark for earnings is pegged at $4.53 per share, indicating a 10.8% rise from the year-ago pe ...

Wall Street analysts forecast that Adobe Systems (ADBE) will report quarterly earnings of $4.53 per share in its upcoming release, pointing to a year-over-year increase of 10.8%. It is anticipated that revenues will amount to $5.37 billion, exhibiting an increase of 9.7% compared to the year-ago quarter.The current level reflects no revision in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial p ...

  Analyst Estimates for Q3 2024 Q2 2024 Q3 2023 Revenue $5.37 billion $5.31 billion $4.89 billion Diluted EPS $3.51 $3.49 $3.05 Net Income $1.57 billion $1.57 billion $1.4 billion Key Metric: Digital Media Revenue  Adobe’s Digital Media arm, which includes Creative Cloud subscriptions, delivered net-new annualized recurring revenue (ARR) of $487 million in the second quarter, up from $470 million a year earlier. The gains helped Adobe post better-than-expected results, sending shares up over 14% the day ...