Adobe Stock Jumps Higher On Next Year Estimates

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Adobe Stock Jumps Higher On Next Year Estimates

Adobe Stock Jumps Higher On Next Year Estimates

In Tuesday's session, tech company Adobe's share increased by 4% as the famous software maker issued its guidance for the year ahead. Adobe's issued guidance was a little lower than the market expectations, for which the company blamed the stronger dollar and tough economic conditions.

For 2023, Adobe is expecting a revenue of $19.1 - $19.3 billion and an adjusted EPS of $15.15 - $15.45. However, the forecast doesn't include the expected impact from the company's recent takeover of the $20 billion company 'Figma'. According to analysts, the expected EPS for Adobe in 2023 is around $15.53, and its revenue will be around $19.82 billion. So even the analyst's expectations are very close to the future guidance given by Adobe company.

But let's not forget that the FX rates are affecting all the major US stocks, especially the tech sector. So based on that, Adobe is expecting a decrease of 4% in its revenue growth. This means that for the next fiscal year, Adobe is expecting revenue growth of 9%.

Create Cloud Design which is a subscription-based service of Adobe, accounted for around 59% of the total company's revenue. This is a good thing as it signifies that Adobe is enjoying a higher rate of customer retention. As for the revenue by country, 59% of Adobe's revenue was driven from America, which increased by 2%.

And when Adobe was asked about the current macroeconomic conditions, it stated that these factors are already priced in its estimates.

Despite the economic conditions in the USA, Adobe company continues to bring better-than-expected results, which are exceptional and an example for all tech companies.

Furthermore, Adobe is also thinking of plans to increase its headcount number, but the pace of this increase will be smaller than in the last few years. However, that's still a good thing, given the other tech companies are actually starting mass layoffs! So in that sense, Adobe is doing a lot better than the tech giants such as Google, Facebook, and Twitter.

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