Will Adobe top Street's bearish view in Q1?
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Adobe (NASDAQ:ADBE) is scheduled to announce Q1 earnings results on Tuesday, Mar. 22, after market close.
The consensus EPS estimate is $3.34 (+6.4% Y/Y) and the consensus revenue estimate is $4.24B (+8.4% Y/Y).
Over the last 2 years, ADBE has beaten EPS estimates 100% of the time and revenue estimates 88% of the time.
Over the last 3 months, EPS estimates have seen 1 upward revision and 2 downward. Revenue estimates have seen 0 upward revisions and 4 downward.
Last week, Citi slashed its price target on ADBE, saying the firm will likely see "lower-than-typical upside" to its net new ARR due to rising competition at the low end of the market. 
UBS in Jan. downgraded ADBE to Neutral on fears of slowing growth in 2022. It said the mix of marketing technology is "shifting", which could hit ADBE's digital experience revenue more than expected.
When ADBE reported Q4 earnings, it provided guidance that disappointed investors. ADBE projected Q1 revenue of $4.23B and adj. EPS of $3.35. Digital Media ARR is expected to be ~$400M of net new ARR.
ADBE estimated FY22 revenue of $17.9B and adj. EPS of $13.7. Digital Media ARR is expected to be ~$1.9B of net new ARR.

Evercore ISI analyst Kirk Materne said forecast was likely hit by forex rates and an additional week of business in Q1. "ADBE usually guides conservatively to start the year," he said. 
The forecast led to analysts cutting their price targets. Jefferies said ADBE may be feeling the effects of "a broader slowdown across the design industry", after a strong year for digital media in 2021. 
On average, Wall Street analysts have rated ADBE Buy, but SA Quant Rating on ADBE is Hold. 
SA contributor Khaveen Investments said ADBE is extremely undervalued and its profitability will likely benefit from solid branding and industry recognition.
ADBE stock, which declined 20.3% YTD, has underperformed the S&P 500 index.