Equities analysts expect that Adobe Systems Incorporated (NASDAQ:ADBE) will report $2.25 billion in sales for the current quarter, Zacks reports. Nine analysts have issued estimates for Adobe Systems’ earnings, with estimates ranging from $2.24 billion to $2.25 billion. Adobe Systems posted sales of $1.84 billion during the same quarter last year, which suggests a positive year over year growth rate of 22.3%. The business is scheduled to issue its next earnings results on Tuesday, September 18th.
According to Zacks, analysts expect that Adobe Systems will report full-year sales of $8.92 billion for the current fiscal year, with estimates ranging from $8.87 billion to $8.96 billion. For the next financial year, analysts expect that the firm will report sales of $10.57 billion per share, with estimates ranging from $10.36 billion to $10.75 billion. Zacks’ sales averages are an average based on a survey of analysts that follow Adobe Systems.
Adobe Systems (NASDAQ:ADBE) last issued its quarterly earnings data on Thursday, June 14th. The software company reported $1.66 earnings per share for the quarter, beating analysts’ consensus estimates of $1.54 by $0.12. Adobe Systems had a return on equity of 27.31% and a net margin of 26.68%. The company had revenue of $2.20 billion for the quarter, compared to the consensus estimate of $2.16 billion. During the same quarter last year, the company earned $1.02 earnings per share. The firm’s revenue for the quarter was up 23.9% compared to the same quarter last year.
ADBE has been the subject of a number of research analyst reports. Royal Bank of Canada increased their price target on Adobe Systems to $268.00 and gave the company an “outperform” rating in a research note on Monday, June 11th. They noted that the move was a valuation call. Zacks Investment Research cut Adobe Systems from a “buy” rating to a “hold” rating in a research note on Tuesday, March 20th. JMP Securities cut Adobe Systems from an “outperform” rating to a “market perform” rating in a research note on Monday, March 26th. Canaccord Genuity reiterated a “buy” rating and issued a $280.00 price target (up from $245.00) on shares of Adobe Systems in a research note on Friday, June 15th. Finally, Morgan Stanley increased their price target on Adobe Systems from $235.00 to $250.00 and gave the company an “equal weight” rating in a research note on Friday, June 15th. Eight analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus price target of $240.21.
In related news, Director John E. Warnock sold 3,000 shares of Adobe Systems stock in a transaction that occurred on Wednesday, April 11th. The stock was sold at an average price of $223.77, for a total transaction of $671,310.00. Following the completion of the transaction, the director now directly owns 16,088 shares in the company, valued at $3,600,011.76. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director John E. Warnock sold 14,000 shares of Adobe Systems stock in a transaction that occurred on Thursday, March 29th. The shares were sold at an average price of $216.53, for a total value of $3,031,420.00. Following the transaction, the director now owns 16,088 shares of the company’s stock, valued at $3,483,534.64. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 47,824 shares of company stock valued at $10,946,578. 0.33% of the stock is owned by company insiders.
A number of hedge funds have recently made changes to their positions in the stock. Mount Yale Investment Advisors LLC purchased a new position in Adobe Systems during the first quarter valued at approximately $132,000. Altium Wealth Management LLC grew its holdings in Adobe Systems by 19.8% in the first quarter. Altium Wealth Management LLC now owns 3,010 shares of the software company’s stock valued at $650,000 after purchasing an additional 497 shares during the period. Nicola Wealth Management LTD. acquired a new stake in Adobe Systems in the first quarter valued at approximately $4,970,000. Chesapeake Wealth Management acquired a new stake in Adobe Systems in the first quarter valued at approximately $982,000. Finally, Suntrust Banks Inc. grew its holdings in Adobe Systems by 18.6% in the first quarter. Suntrust Banks Inc. now owns 57,685 shares of the software company’s stock valued at $12,463,000 after purchasing an additional 9,052 shares during the period. Institutional investors own 85.49% of the company’s stock.
ADBE stock traded down $1.95 during trading on Friday, reaching $240.30. 207,147 shares of the company traded hands, compared to its average volume of 3,681,544. Adobe Systems has a 12 month low of $138.31 and a 12 month high of $258.91. The company has a market cap of $118.04 billion, a P/E ratio of 66.86, a PEG ratio of 2.64 and a beta of 1.08. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.12 and a quick ratio of 2.12.
Adobe Systems declared that its Board of Directors has authorized a stock repurchase plan on Monday, May 21st that authorizes the company to buyback $8.00 billion in shares. This buyback authorization authorizes the software company to purchase up to 6.8% of its stock through open market purchases. Stock buyback plans are typically an indication that the company’s management believes its shares are undervalued.
About Adobe Systems
Adobe Systems Incorporated operates as a diversified software company worldwide. Its Digital Media segment provides tools and solutions that enable individuals, small and medium businesses, and enterprises to create, publish, promote, and monetize their digital content. Its flagship product is Creative Cloud, a subscription service that allows customers to download and install the latest versions of its creative products.
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