Adobe Inc. (NASDAQ:ADBE) is scheduled to announce its first-quarter fiscal 2024 results on March 14.
For the fiscal first quarter, the company anticipates non-GAAP earnings per share in the range of $5.10 to $5.15. The Consensus Estimate for earnings stands at $5.13 per share, reflecting a 10.3% increase from the year-ago reported figure.
Adobe forecasts total revenues between $4.35 billion and $4.40 billion. The consensus estimate for revenues is $4.38 billion, suggesting a 15.3% growth from the year-ago reported figure.
The company has surpassed the Consensus Estimate in the past four quarters, with an average earnings surprise of 3.42%.
Factors to Watch
Adobe is expected to have experienced strong momentum in its Digital Media and Digital Experience segments, driving top-line growth in the quarter.
The company likely benefited from a robust performance in its Creative Cloud and Document Cloud offerings, contributing to the Digital Media segment’s revenue growth. Adobe expects Digital Media revenues to be between $3.77 billion and $3.80 billion, with the consensus estimate at $3.78 billion, indicating a year-over-year growth of 11.5%.
Adobe Express and the recently acquired Frame.io are expected to have supported growth in Creative revenues. Additionally, the company’s generative AI initiatives, particularly Firefly, likely contributed positively.
In the Document Cloud segment, Adobe likely saw strength in its enterprise business and Acrobat ecosystem, driven by demand for PDF collaboration services.
The Digital Experience segment is expected to have benefited from growing subscriptions to Adobe Experience Cloud products, including Marketing Cloud, Analytics Cloud, and Advertising Cloud. Demand for AEP, native apps, and solutions across Data & Insights, Content, and Workfront likely supported the segment’s performance.
However, ongoing tensions between Russia and Ukraine may have posed challenges during the quarter.
In conclusion, Adobe’s strong product portfolio and strategic initiatives are expected to have driven its performance in the first quarter.
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Author Stephanie Bédard-Châteauneuf 