Adobe (NASDAQ:ADBE) Releases Q3 2024 Earnings Guidance

Adobe (NASDAQ:ADBEGet Free Report) issued an update on its third quarter 2024 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 4.500-4.550 for the period, compared to the consensus estimate of 4.170. The company issued revenue guidance of $5.3 billion-$5.4 billion, compared to the consensus revenue estimate of $5.0 billion. Adobe also updated its FY 2024 guidance to 18.000-18.200 EPS.

Adobe Trading Up 14.5 %

Shares of Adobe stock opened at $525.31 on Friday. The stock has a fifty day simple moving average of $474.63 and a 200 day simple moving average of $540.63. Adobe has a 12-month low of $433.97 and a 12-month high of $638.25. The company has a market capitalization of $235.34 billion, a P/E ratio of 47.20, a price-to-earnings-growth ratio of 2.48 and a beta of 1.27. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.14.

Adobe (NASDAQ:ADBEGet Free Report) last announced its quarterly earnings results on Thursday, June 13th. The software company reported $4.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.39 by $0.09. Adobe had a return on equity of 39.98% and a net margin of 24.86%. The business had revenue of $5.31 billion during the quarter, compared to the consensus estimate of $5.29 billion. During the same quarter in the prior year, the company posted $3.04 earnings per share. Adobe’s revenue was up 10.2% compared to the same quarter last year. On average, sell-side analysts anticipate that Adobe will post 14.55 earnings per share for the current fiscal year.

Adobe declared that its board has authorized a stock buyback program on Thursday, March 14th that allows the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization allows the software company to buy up to 10.8% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s management believes its shares are undervalued.

Wall Street Analysts Forecast Growth

ADBE has been the topic of several research analyst reports. Robert W. Baird boosted their price objective on Adobe from $525.00 to $545.00 and gave the stock a neutral rating in a research report on Friday. HSBC cut their price objective on Adobe from $557.00 to $511.00 and set a hold rating on the stock in a research report on Friday, March 15th. StockNews.com cut Adobe from a buy rating to a hold rating in a research report on Wednesday. Royal Bank of Canada reaffirmed an outperform rating and set a $600.00 price target on shares of Adobe in a research report on Friday. Finally, JPMorgan Chase & Co. raised Adobe from a neutral rating to an overweight rating and upped their price target for the company from $570.00 to $580.00 in a research report on Friday. Two investment analysts have rated the stock with a sell rating, eight have given a hold rating and twenty have given a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of Moderate Buy and an average price target of $604.35.

Check Out Our Latest Stock Report on Adobe

Insiders Place Their Bets

In other news, CAO Mark S. Garfield sold 97 shares of the stock in a transaction dated Thursday, April 25th. The stock was sold at an average price of $468.41, for a total transaction of $45,435.77. Following the transaction, the chief accounting officer now directly owns 4,128 shares in the company, valued at approximately $1,933,596.48. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In other news, insider Anil Chakravarthy sold 100 shares of the stock in a transaction dated Monday, April 22nd. The stock was sold at an average price of $471.00, for a total transaction of $47,100.00. Following the transaction, the insider now directly owns 33,609 shares in the company, valued at approximately $15,829,839. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO Mark S. Garfield sold 97 shares of the stock in a transaction dated Thursday, April 25th. The shares were sold at an average price of $468.41, for a total value of $45,435.77. Following the transaction, the chief accounting officer now owns 4,128 shares in the company, valued at $1,933,596.48. The disclosure for this sale can be found here. Insiders have sold 3,006 shares of company stock worth $1,424,432 in the last ninety days. 0.15% of the stock is currently owned by insiders.

About Adobe

(Get Free Report)

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.

Further Reading

Earnings History and Estimates for Adobe (NASDAQ:ADBE)

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