Adobe Systems (NSD:ADBE) is set to announce its fiscal first-quarter earnings on March 15, after the market closes. Despite unfavorable exchange rates during the quarter. The company managed to enhance its product offerings with new capabilities, which could potentially drive demand in the upcoming quarter.
As a provider of digital marketing, multimedia, and creativity software products, Adobe’s stock has declined by about 4% this year. However, analysts expect the company to report earnings of $3.68 per share in Q1, surpassing its year-ago figure of $3.37 per share. Analysts anticipate that revenue will reach $4.62 billion, indicating an 8.7% year-over-year increase.
Adobe Systems Stock Analysis
According to 25 analysts, the average analyst target price for Adobe Systems Incorporated over the next 12 months is USD 373.17, with a Buy rating as the average analyst ratings. Stock Target Advisor’s analysis of Adobe Systems Incorporated is Bullish, based on 9 positive signals and 3 negative signals. At the last closing, Adobe Systems Incorporated’s stock price was USD 324.27. The company’s stock price has declined by -6.56% over the past week, -13.53% over the past month, and -22.12% over the last year.
Is Adobe Worth Investing In?
Investors may be wondering whether Adobe is worth investing in. According to Wall Street analysts, ADBE stock has a Moderate Buy consensus rating based on 11 Buys and 13 Holds. The average stock price target of $383.25 implies an upside potential of over 18.2%.
Adobe’s impressive earnings history over the past three years also gives investors confidence about its potential to surpass expectations for the upcoming quarter easily. Moreover, the acquisition of Figma, which is set to close this year, may help the company expand its total addressable market.
Unfavorable exchange rates may have impacted Adobe’s Q1 earnings report, but strong user engagement, reflected in increased website visits, could potentially generate positive results. Wall Street analysts have a moderate buy consensus rating for the stock, and the company’s track record of exceeding expectations may give investors confidence in its potential for future growth. Additionally, the acquisition of Figma could broaden Adobe’s market reach, making it an intriguing option for investors.