Adobe Stock To Top The Street Expectations In Q1

Adobe (NASDAQ: ADBE) is scheduled to report its fiscal Q1 2023 results on Wednesday, March 15 (after market close). We expect Adobe
ADBE
to edge past the consensus estimates of revenues and earnings. The technology giant surpassed the street estimates in the last quarter, with total revenues improving 10% y-o-y to $4.53 billion. It was driven by a 10% rise in digital media and a 14% growth in the digital experience units. Notably, the digital media segment benefited from an 8% increase in the creative cloud, followed by a 16% rise in the document cloud sub-segment. We expect the first-quarter results to be on similar lines (Note – Adobe’s FY’22 ended on December 2, 2022. Q1 FY’23 refers to the quarter that ended on March 3, 2023).

Our forecast indicates that Adobe’s valuation is $386 per share, which is 19% above the current market price of just above $324. Our interactive dashboard analysis on Adobe’s Earnings Preview has more details.