Adobe Systems (Nasdaq: ADBE) is expected to report Q4 earnings on Dec. 17. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Adobe Systems's revenues will wane -4.4% and EPS will wane -16.4%.
The average estimate for revenue is $1.10 billion. On the bottom line, the average EPS estimate is $0.56.
Revenue details
Last quarter, Adobe Systems reported revenue of $1.08 billion. GAAP reported sales were 6.6% higher than the prior-year quarter's $1.01 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, non-GAAP EPS came in at $0.58. GAAP EPS of $0.40 for Q3 were 2.6% higher than the prior-year quarter's $0.39 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 88.9%, 80 basis points worse than the prior-year quarter. Operating margin was 26.0%, 140 basis points worse than the prior-year quarter. Net margin was 18.6%, 70 basis points worse than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $4.35 billion. The average EPS estimate is $2.31.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,776 members out of 1,896 rating the stock outperform, and 120 members rating it underperform. Among 495 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 467 give Adobe Systems a green thumbs-up, and 28 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Adobe Systems is outperform, with an average price target of $33.85.
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