will report fiscal third quarter results after market close on Tuesday, but the numbers may be overshadowed by the broader global decline in equities.
Adobe stock (ticker: ADBE) fell 2% to $641.29 Monday, compared to 2.2% decline for the tech-heavy Nasdaq Composite Index. Adobe shares were still up 28% to date, no surprise given that the company reported better-than-expected results in every segment in its most recently reported quarter.
For the fiscal third quarter, Wall Street’s consensus estimate calls for revenue of $3.89 billion and non-GAAP earnings of $3.01 per share, according to FactSet.
Citi Research analyst Tyler Radke wrote in a note before the market opened Monday that he expects the company to exceed expectations — which he considers conservative — and raise its full-year forecasts.
He wrote that Adobe is benefiting from management’s effective implementation of its plans, as well as broader technology spending trends. Still, he said the positive news may already be reflected in Adobe’s stock price, as it has surged more than 40% in the past six months. It has a neutral rating and a $575 target.
Edward Jones analyst Logan Purk wrote in a note earlier this month that the company’s management team has a strong track record of helping Adobe become a leader in digital publishing and marketing analytics. He believes the stock’s premium over its competitors is justified based on his leadership in growing markets, product innovation and his management team.
“After moving to a subscription revenue model, we believe Adobe is well positioned for good recurring revenue growth and has the financial flexibility to invest in new products, including machine learning and augmented reality,” Purk wrote.
Of course, if market woes continue on Tuesday, the earnings report may remain under the radar.
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