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 ...

Adobe Systems (ADBE) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.Shares of this software maker have returned +4.3% over the past month versus the Zacks S&P 500 composite's +2.5% change. The Zacks Computer - Software industry, to which Adobe belongs, has lost 1.7% over this period. Now the key question is: Where could the stock be headed in the near term?Although media report ...

Stock-split euphoria has taken hold on Wall Street, and these two sensational businesses may be next to join an exclusive group of stock-split stocks.Although artificial intelligence (AI) has been the clear-cut next-big-thing trend driving Wall Street's major stock indexes to record-closing highs in 2024, don't overlook the equally important role stock-split euphoria has played in lifting equities.Stock splits are a tool publicly traded companies have at their disposal that allows them to cosmetically adjus ...

In the latest market close, Adobe Systems (ADBE) reached $559.44, with a +0.2% movement compared to the previous day. The stock outpaced the S&P 500's daily loss of 0.32%. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq depreciated by 0.85%.Shares of the software maker have appreciated by 2.92% over the course of the past month, outperforming the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.52%.Analysts and investors alike will be keeping a close eye on the ...