Adobe Inc. (NASDAQ: ADBE) is expected to announce its fiscal Q3 earnings on September 15. Shares of the creativity and enterprise software company have tanked 30% this year. This is even after its Q2 earnings beat Street estimates but the bleak outlook left analysts disappointed.
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In fiscal Q3, ADBE expects total revenue of $4.43 billion versus the consensus estimate of $4.44 billion. Furthermore, adjusted earnings are anticipated to come in at $3.33, in line with analysts’ estimates of $3.34 per share.
The company’s management had stated on its fiscal Q2 earnings call that it was now factoring in “an incremental effects headwind of $175 million across Q3 and Q4 revenue” as a result of exchange rate fluctuations.
While the company admitted that it expected the demand for its products to remain strong going into Q3, it now expected the second half of FY22 “to show more pronounced summer seasonality in Q3 and the enterprise business with a stronger sequential increasing Q4.”
For Fiscal 2022, total revenue is expected to be $17.65 billion while analysts are expecting the company to generate revenues of $17.68 billion. Furthermore, adjusted earnings are anticipated to come in at $13.50 per share, below Street estimates of $13.54.
For the third quarter and full year, Adobe expects double-digit revenue growth across all segments.
Is Adobe a Buy Now?
Consensus among analysts is a Strong Buy based on 16 Buys and five Holds. The average Adobe price target of $455.33 implies 14.8% upside potential.
