RBC Capital analysts shared their outlook on Adobe Inc. (NASDAQ:ADBE) ahead of the company’s Q2 earnings, expected to be reported on June 16. An improved start to the year after a mixed Q4 led to the improved sentiment that has now given way to a multitude of macro concerns.
According to the analysts, the number one question for the company is the durability of customer spend and the resiliency, particularly of digital media, in an uneven environment.
The analysts expect a slight upside to the Street estimates for digital new media ARR (consensus of $442 million and guidance of $440 million), total revenue (consensus of $4.345 billion, up 13% year-over-year, and guidance of $4.340 billion), and EPS (consensus of $3.31).
The analysts reiterated their outperform rating but lowered the price target to $500 from $600 on peer-multiple contraction.