The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Adobe Systems's revenues will drop -10.2% and EPS will shrink -43.3%.
The average estimate for revenue is $1.01 billion. On the bottom line, the average EPS estimate is $0.34.
Last quarter, Adobe Systems reported revenue of $1.01 billion. GAAP reported sales were 3.6% lower than the prior-year quarter's $1.05 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.35. GAAP EPS of $0.13 for Q1 were 65% lower than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 84.5%, 510 basis points worse than the prior-year quarter. Operating margin was 9.7%, much worse than the prior-year quarter. Net margin was 6.5%, much worse than the prior-year quarter.
The full year's average estimate for revenue is $4.11 billion. The average EPS estimate is $1.45.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,762 members out of 1,884 rating the stock outperform, and 122 members rating it underperform. Among 503 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 474 give Adobe Systems a green thumbs-up, and 29 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 $38.24.
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