Adobe Earnings Breakdown: Adobe Surpasses Estimates but Faces Challenges

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Adobe Systems Incorporated

Stocks Analysis by Michael Gouvalaris covering: S&P 500, Adobe Systems Incorporated. Read Michael Gouvalaris's latest article on Investing.com

) reported adjusted EPS of $4.81 in Q3, exceeding market estimates of $4.67. The company has beaten street estimates in each of the last 8 quarters.Earnings grew 13% over last year, which is below the 8-quarter average of 16% . Earnings growth has slowed for the 5th straight quarter now.

Sales came in at $5.61 billion, which exceeded expectations of $5.54 billion. Adobe has also beaten street estimates for sales over the last 8 quarters. Sales came in 1.2% above street estimates, which happens to be the biggest beat in the last 8 quarters and well above the recent average of 0.7%.Forward guidance was a bit shy of market expectations. The market is currently pricing in about 11% EPS growth over the next 4 quarters, on a forward price-to-earnings ratio of 23.8 based on this morning's opening price. The stock is still trading below its 2021 high of $699, but well off its bear market low.

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