Adobe Systems (ADBE) has a history of delivering positive earnings surprises, and the recent quarters were no exception. When the publishing software maker reports third-quarter results Thursday after the closing bell, the market will be looking for earnings of $1.69 per share on revenues of $2.25 billion, representing a double-digit growth compared to last year.
Considering the company’s bullish performance on the bourses in recent months, owing mainly to the outstanding earnings performance in successive quarters, another earnings beat could drive the stock up to a new record high. The management’s upbeat outlook indicates the current trend will continue for the rest of the year, with all the key segments including Digital Experience maintaining the momentum.
Considering the company’s bullish performance on the bourses, another earnings beat could drive the stock up to a new record high
The top-line stands to benefit considerably from the fast-paced subscription growth, especially in Digital Media which is home to Adobe Document Cloud and Creative Cloud. With product sales moving closer to stagnation, the cloud business is assuming importance. The above-consensus growth witnessed in recent quarters is expected to continue in the near term.
The cloud-based e-commerce offerings of the California-based tech firm will get a major boost once it completes the integration of Magento Commerce, which was acquired recently for about $1.7 billion. Meanwhile, considering the relatively smaller contribution from the product segment, it is estimated that the shrinking sales will have only a moderate impact on total revenues in the June quarter.
For the second quarter, the company reported better than expected earnings, supported by a 24% jump in revenues amid strong subscription growth.
Microsoft (MSFT), which competes with Adobe in certain key products and services, in July reported strong earnings growth for the fourth quarter aided by broad-based revenue growth, triggering a stock rally.
Adobe, one of the best performing Wall Street stocks, gained consistently over the past 12 months and registered a 73% growth before hitting an all-time high in August. The stock closed the last trading session slightly higher and continued to gain in the premarket session today.
Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared
Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million
With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard