Adobe (NASDAQ:ADBE) Releases Earnings Results, Beats Expectations By $0.09 EPS

Adobe (NASDAQ:ADBE) issued its earnings results on Thursday. The software company reported $4.48 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.39 by $0.09, RTT News reports. Adobe had a net margin of 24.86% and a return on equity of 39.98%. The business had revenue of $5.31 billion for the quarter, compared to analyst estimates of $5.29 billion. During the same quarter in the prior year, the business posted $3.04 EPS. The company’s revenue for the quarter was up 10.2% on a year-over-year basis.

Adobe Stock Up 14.5 %

Shares of ADBE traded up $66.57 during mid-day trading on Friday, hitting $525.31. 14,846,614 shares of the company’s stock were exchanged, compared to its average volume of 3,281,535. The firm has a fifty day moving average of $474.63 and a two-hundred day moving average of $541.20. Adobe has a twelve month low of $433.97 and a twelve month high of $638.25. The stock has a market cap of $235.34 billion, a price-to-earnings ratio of 47.20, a P/E/G ratio of 2.48 and a beta of 1.27. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.14.

Insider Transactions at Adobe

In related news, CAO Mark S. Garfield sold 96 shares of the firm’s stock in a transaction on Tuesday, April 16th. The shares were sold at an average price of $470.00, for a total value of $45,120.00. Following the transaction, the chief accounting officer now directly owns 4,128 shares in the company, valued at approximately $1,940,160. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. In related news, CAO Mark S. Garfield sold 96 shares of the firm’s stock in a transaction on Tuesday, April 16th. The shares were sold at an average price of $470.00, for a total value of $45,120.00. Following the transaction, the chief accounting officer now directly owns 4,128 shares in the company, valued at approximately $1,940,160. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Anil Chakravarthy sold 100 shares of the firm’s stock in a transaction on Monday, April 22nd. The shares were sold at an average price of $471.00, for a total transaction of $47,100.00. Following the completion of the transaction, the insider now owns 33,609 shares in the company, valued at $15,829,839. The disclosure for this sale can be found here. Insiders have sold a total of 3,006 shares of company stock worth $1,424,432 in the last 90 days. 0.15% of the stock is owned by insiders.

Adobe declared that its Board of Directors has approved a stock buyback program on Thursday, March 14th that allows the company to buyback $25.00 billion in outstanding shares. This buyback authorization allows the software company to reacquire up to 10.8% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on ADBE. JPMorgan Chase & Co. raised shares of Adobe from a “neutral” rating to an “overweight” rating and boosted their price objective for the company from $570.00 to $580.00 in a research report on Friday. Citigroup decreased their target price on shares of Adobe from $554.00 to $529.00 and set a “neutral” rating for the company in a research report on Monday, June 10th. TD Cowen decreased their target price on shares of Adobe from $640.00 to $625.00 and set a “buy” rating for the company in a research report on Monday, June 10th. Royal Bank of Canada restated an “outperform” rating and issued a $600.00 target price on shares of Adobe in a research report on Friday. Finally, DA Davidson reaffirmed a “buy” rating and issued a $685.00 price target on shares of Adobe in a research note on Thursday, March 28th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and twenty have given a buy rating to the company. According to data from MarketBeat, Adobe presently has an average rating of “Moderate Buy” and an average target price of $604.35.

Adobe Company Profile

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.