Adobe Tops 3Q Estimates Spurred By Cloud-Based Software Demand

Adobe delivered stronger-than-expected 3Q results, thanks to the robust demand for cloud-based creative software amid the coronavirus pandemic. The software maker's 3Q adjusted earnings jumped 25% to $2.57 per share year-on-year, and topped analysts’ estimates of $2.41. Its revenues rose 14% to $3.23 billion and also came above the Street […]

Adobe delivered stronger-than-expected 3Q results, thanks to the robust demand for cloud-based creative software amid the coronavirus pandemic. The software maker's 3Q adjusted earnings jumped 25% to $2.57 per share year-on-year, and topped analysts’ estimates of $2.41. Its revenues rose 14% to $3.23 billion and also came above the Street consensus of $3.16 billion. Shares rose 1.9% after-hours on Tuesday.Adobe (ADBE) said sales of the company’s flagship creative segment increased 19% to $1.96 billion, while revenues at its document cloud division grew 22% to $375 million, benefiting from the increase in remote work trends during the pandemic. Adobe’s digital media segment sales advanced 19% to $2.34 billion.The company projects 4Q sales of $3.35 billion and adjusted earnings of $2.64 per share. Adobe also expects its digital media segment revenue to increase by 18% in the fourth quarter ending in November. (See ADBE stock analysis on TipRanks).Just ahead of Adobe’s 3Q numbers, BMO Capital analyst Keith Bachman raised the stock's price target to $535 (7.5% upside potential) from $440 and maintained a Buy rating, citing "upside" in 3Q results and November-quarter guidance. He remains bullish on the opportunities for the company's document cloud business.Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 8 Buys and 1 Hold. The average price target of $525.56 implies upside potential of about 5.6% to current levels. Shares gained about 51% year-to-date.Related News: 3M Surprises With 3Q Sales Outlook As Street Says Hold Carnival To Post $2.9B Loss in 3Q; Shares Drop 3% In Pre-Market ExlService Lifts 2020 Profit Outlook As Business Rebounds More recent articles from Smarter Analyst: * Square Launches On-Demand Pay Tools; Shares Pop 7% * Apple Launches Virtual Fitness, Bundles Services To Meet Remote Demand * Opko Launches Phase 2 Trial Of Covid Treatment Rayaldee; Street Bullish * Slack Or Zoom: Which Tech Stock Has A Higher Upside Potential?

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Wed Sep 16 , 2020
This is the web version of the Bull Sheet, Fortune’s no-BS daily newsletter on the markets. Sign up to receive it in your inbox here. Good morning. The rally in global equities continues on Wednesday as investors await the Fed’s big policy briefing later today. Let’s check where investors are putting […]