Adobe Q3 earnings preview: All eyes on margin amid weak sentiment
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Adobe (NASDAQ:ADBE) is scheduled to announce Q3 earnings results on Thursday, September 15th, after market close.
The software company reported Q2 results that topped expectations, but issued guidance that was below estimates, prompting analysts to worry about the "controversial" outlook.
Adobe expects Q3 revenue would be $4.43B and adjusted earnings would be $3.33 per share. The current consensus EPS Estimate is $3.34 (+7.5% Y/Y) and the consensus Revenue Estimate is $4.44B (+12.8% Y/Y).
EPS estimates have seen 4 upward revisions and 19 downward in the last three months. Revenue estimates have seen 0 upward revisions and 19 downward.
Shares have fallen -34% YTD, relatively in line with other software-as-a-service peers.

Adobe has fallen in the days ahead of its Q3 report after two successive analyst downgrades. Mizuho was first, warning of a "more difficult environment than expected." BMO Capital Markets followed, citing "too many concerns" about Abode's (ADBE) Creative Cloud offerings, in particular.
On the other hand, Cowen sees pricing changes as a tailwind amid weak sentiment, allowing the software maker to reiterate its full-year guidance despite macro headwinds ahead. Investors will be looking at management comments on slowing sales growth and margin pressures.
Over the last 2 years, ADBE has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.