Adobe Q1 Results: Will strong revenues, excellent forecast push share prices higher? Let’s Find Out!

Adobe Q1 results: Key insights

1. Adobe raised its FY23 profit per share target to $15.60, much higher than analyst expectations of $15.30.
2. Adobe expects revenue for the second quarter of FY23 between $4.75 billion-$4.78 billion, much higher than industry expectations.
3. Adobe’s management made clear their intention to fight any attempt by regulators to block the company’s pending $20 billion acquisition of design tool provider Figma.
4. Adobe will announce some new initiatives in generative artificial intelligence in the week ending March 26 at a user conference in Las Vegas.

Adobe share price and Adobe results:

Adobe shares jumped 5.5% in after-market trading on March 16, 2023 on the back of solid quarterly results. Adobe shares have lost 52% of its value since record highs hit in November 2021 along with most technology related stocks over a constant rise in interest rates.

Adobe share historical performance:

Decoding Adobe Q1 earnings:

Adobe Revenue

• Revenue rose 9.2% to $4.66 billion from a year ago compared to analyst expectations of $4.62 billion, according to Refinitiv.
• The company’s Digital Media segment, which includes the Creative Cloud design software bundle, generated $3.4 billion in revenue, up 9% from a year ago and above the $3.36 billion analyst estimates.

Adobe net profit

Net income attributable to ordinary shareholders slipped 1.5% to $1.2 billion from $1.3 billion a year earlier.

Adobe dividend

Adobe board did not release any dividend for the quarter.

Adobe share price target

• Renowned brokerage JP Morgan has a ‘buy’ rating on the stock and a share price target of $380 from $365.
• Renowned brokerage US Jefferies has a ‘buy’ rating on the firm with a share price target of $440
• Brokerage BMO has a ‘buy’ rating on the stock with a price target of $395.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.