Adobe is set to release its earnings report after the market closes on Thursday. The stock price reached a record high of $699.54 in 2021 but has since decreased to around $458. Investors are anticipating significant movements in the stock price following the earnings announcement, with the possibility of a gap up if the numbers exceed expectations or a gap down if they disappoint. Analysts are forecasting earnings of $4.39 per share on revenue of $5.28 billion. Additionally, the unofficial “Whisper number” is slightly higher at $4.43 per share.
Looking at the company’s fundamental data, Adobe has seen fluctuations in its annual earnings in recent years. Earnings grew steadily from 2017 to 2023, reaching $16.07 per share in the latter year. However, projections indicate a decline to $14.13 per share in 2024, followed by a rebound to $16.17 per share in 2025. The company’s use of artificial intelligence is considered a wildcard that could potentially impact earnings growth beyond current expectations.
On a technical level, Adobe’s stock is currently underperforming, being 28% below its 52-week high and trading below both its 50 and 200-day moving averages. These moving averages are commonly used to assess the stock’s health. While being below both averages does not rule out the possibility of a rally, the stock is currently facing downward pressure.
Adobe operates as a diversified software company globally, with three primary segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment provides software, services, and solutions for content creation and promotion, including its popular Creative Cloud subscription service. The Digital Experience segment offers a platform for creating and optimizing customer experiences, while the Publishing and Advertising segment provides various products and services for e-learning, technical publishing, web development, and advertising solutions.
As earnings season unfolds, it is crucial to monitor how the market and individual companies respond to the news. Keeping losses minimal and respecting market trends are key principles to follow during this time. The disclosure states that Adobe has been featured on FindLeadingStocks.com, a member-only newsletter that highlights breakout stocks and market leaders to help investors identify strong investment opportunities. Readers are encouraged to take a free trial to explore how the newsletter can assist them in identifying leading stocks.
