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The Key Takeaways
- Adobe will report its earnings after the close of the markets on Wednesday. Revenue and profit are expected to increase by about 10% compared to the previous quarter.
- Adobe’s stock is expected to rebound from its lows of earlier in the year, and to return to positive territory by 2024.
- Adobe’s stock price has seen large movements after quarterly reports in this year. It moved lower following the first, third and fourth quarters. And it went higher after the second.
Adobe (ADBE), the company that produces Adobe products, is expected to announce its earnings for the fiscal fourth quarter 2024 at the end of Wednesday.
Visible Alpha tracks 15 analysts who are largely bullish about the Photoshop stock and its other shares. The analysts divided up into 11 groups. “buy” Ratings with Three “hold” Ratings and One “sell” rating. According to analysts, the average price of $619 is roughly 12% higher than Friday’s close. This suggests that Adobe can rebound from this year’s lows and return to a positive price for 2024.
Adobe expects to generate $5.54 billion revenue in the third quarter and $1.63 billion net profit, both of which are projected to be 10% higher than the fourth quarter 2023.
Adobe Stock Closes out Volatile Years with Q4 Report
Adobe shares have moved dramatically following its quarterly reports, with the stock falling two times and rising one. Adobe reported its first quarter and third quarter results in a 13% drop and an 8% rise, respectively. Shares soared by 14.5% following the second quarter report.
Adobe's quarterly results beat estimates in each report, but softer-than-expected outlook for the following quarter likely overshadowed the earnings beats in the first and third quarters as shares fell.
Analysts who remained optimistic after Adobe’s last-quarter report said that they believed Adobe’s projections for the fourth quarter were conservative, but could still be exceeded. They also said its earnings would benefit from artificial intelligence products in 2025.
Adobe’s shares are little changed at $555.76 on Monday morning and down 7.3% since the start of this year.
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