Adobe (NASDAQ:ADBE) Issues Q3 2024 Earnings Guidance

Adobe (NASDAQ:ADBE) updated its third quarter 2024 earnings guidance on Thursday. The company provided EPS guidance of 4.500-4.550 for the period, compared to the consensus EPS 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.

Analysts Set New Price Targets

A number of research analysts have recently commented on the company. Evercore ISI reaffirmed an outperform rating and set a $650.00 target price on shares of Adobe in a research note on Friday, June 7th. Citigroup lowered their price target on Adobe from $554.00 to $529.00 and set a neutral rating for the company in a report on Monday, June 10th. Barclays boosted their price target on Adobe from $630.00 to $650.00 and gave the company an overweight rating in a report on Friday. UBS Group lowered their price target on Adobe from $600.00 to $540.00 and set a neutral rating for the company in a report on Friday, March 15th. Finally, Stifel Nicolaus lowered their price target on Adobe from $625.00 to $600.00 and set a buy rating for the company in a report on Friday, June 7th. Two investment analysts have rated the stock with a sell rating, eight have issued a hold rating and twenty have given a buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of Moderate Buy and an average price target of $604.35.

Adobe Price Performance

NASDAQ ADBE opened at $525.31 on Friday. The company has a debt-to-equity ratio of 0.14, a current ratio of 1.05 and a quick ratio of 1.05. The stock’s fifty day moving average price is $474.63 and its 200 day moving average price is $540.63. Adobe has a 1 year low of $433.97 and a 1 year high of $638.25. The company has a market cap of $235.34 billion, a price-to-earnings ratio of 47.20, a PEG ratio of 2.48 and a beta of 1.27.

Adobe (NASDAQ:ADBE) last released its earnings results on Thursday, June 13th. The software company reported $4.48 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $5.31 billion for the quarter, compared to the consensus estimate of $5.29 billion. During the same period in the prior year, the firm earned $3.04 EPS. The firm’s revenue was up 10.2% on a year-over-year basis. As a group, equities research analysts forecast that Adobe will post 14.55 earnings per share for the current year.

Adobe declared that its board has initiated a stock repurchase plan on Thursday, March 14th that permits the company to repurchase $25.00 billion in outstanding shares. This repurchase authorization permits the software company to purchase up to 10.8% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.

Insider Activity at Adobe

In other Adobe news, EVP Scott Belsky sold 2,713 shares of the stock in a transaction dated Thursday, May 2nd. The stock was sold at an average price of $474.30, for a total transaction of $1,286,775.90. Following the sale, the executive vice president now directly owns 21,114 shares of the company’s stock, valued at approximately $10,014,370.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. In other Adobe news, EVP Scott Belsky sold 2,713 shares of the stock in a transaction dated Thursday, May 2nd. The stock was sold at an average price of $474.30, for a total transaction of $1,286,775.90. Following the sale, the executive vice president now directly owns 21,114 shares of the company’s stock, valued at approximately $10,014,370.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, 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 value of $47,100.00. Following the sale, the insider now directly owns 33,609 shares in the company, valued at $15,829,839. The disclosure for this sale can be found here. Insiders have sold a total of 3,006 shares of company stock valued at $1,424,432 in the last ninety days. Company insiders own 0.15% of the company’s stock.

About Adobe

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.