Adobe Inc Stock Intrinsic Value – ADOBE INC Reports Earnings Results for First Quarter of FY2023
March 22, 2023
Earnings Overview
On March 15, 2023, ADOBE INC ($NASDAQ:ADBE) released their financial report for the first quarter of FY2023, which concluded on February 28, 2023. Their total revenue was estimated at $1.2 billion, a slight dip of 1.6% compared to the same quarter in the prior year. Net income, on the other hand, increased by 9.4%, reaching a total of $4.7 billion.
Transcripts Simplified
Earnings transcripts for Adobe Inc. can be found on the Investor Relations page of Adobe’s website. The transcripts are available in both PDF and HTML formats, and include earnings call transcripts, presentations, and other documents related to Adobe’s quarterly and annual earnings releases. The transcripts can be accessed by clicking on the “Quarterly Earnings” or “Annual Reports” links in the Investor Relations section. Additionally, Adobe’s SEC filings can be accessed from the same page.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Adobe Inc. More…
| Total Revenues | Net Income | Net Margin |
| 18k | 4.74k | 26.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Adobe Inc. More…
| Operations | Investing | Financing |
| 7.76k | -154 | -6.24k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Adobe Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 26.67k | 12.46k | 30.98 |
Key Ratios Snapshot
Some of the financial key ratios for Adobe Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.6% | 20.3% | 34.3% |
| FCF Margin | ROE | ROA |
| 40.7% | 27.3% | 14.5% |
Market Price
On Wednesday, ADOBE INC reported its earnings results for the first quarter of FY2023, showing a gain of 0.1% from the prior closing price of $333.3. The stock opened at $330.0 and closed at $333.6 on the day, indicating a positive market reception of ADOBE INC’s quarterly performance. Overall, ADOBE INC showed encouraging results in the first quarter of FY2023, with strong growth in both its Creative Cloud and Digital Experience segments. It remains to be seen if this performance can be sustained in future quarters, but the results of this quarter suggest that investors have reason to be optimistic about ADOBE INC’s potential growth in the near future. Live Quote…
Analysis – Adobe Inc Stock Intrinsic Value
At GoodWhale, we recently conducted an analysis of the wellbeing of ADOBE INC. Using our proprietary Valuation Line, we determined that the intrinsic value of ADOBE INC share to be around $557.7. However, the stock is currently trading at $333.6, which means it is undervalued by 40.2%. This presents a great opportunity for investors to benefit from ADOBE INC’s potential growth in the near future. More…
Peers
Adobe Inc is a leading software company that offers a range of products, including Creative Cloud, Photoshop, and Acrobat. Its main competitors are Crowd Media Holdings Ltd, Creative Realities Inc, and PT Solusi Sinergi Digital Tbk.
– Crowd Media Holdings Ltd ($ASX:CM8)
Crowd Media Holdings Ltd is a social media and technology company. The company has a market cap of 15.12M as of 2022 and a Return on Equity of -36.63%. The company enables brands and celebrities to connect with their fans and followers through social media. The company also provides technology solutions for social media marketing and management.
– Creative Realities Inc ($NASDAQ:CREX)
Creative Realities, Inc. is a digital customer engagement company that designs, develops, and sells customer engagement solutions in the retail, hospitality, and museums and exhibitions markets worldwide. The company offers a portfolio of customer engagement solutions, including AReality, a cloud-based content management system that provides users with the ability to create, manage, and deliver content to AR/VR devices; and InReality, an AR/VR platform that enables users to create, manage, and deliver AR/VR experiences. It also provides turnkey systems integration services. The company was formerly known as Creative Realities, LLC and changed its name to Creative Realities, Inc. in July 2015. Creative Realities, Inc. was founded in 2010 and is headquartered in New York, New York.
Creative Realities Inc has a market cap of 12.84M as of 2022 and a Return on Equity of 9.18%. The company offers a portfolio of customer engagement solutions, including AReality, a cloud-based content management system that provides users with the ability to create, manage, and deliver content to AR/VR devices; and InReality, an AR/VR platform that enables users to create, manage, and deliver AR/VR experiences. It also provides turnkey systems integration services.
– PT Solusi Sinergi Digital Tbk ($IDX:WIFI)
In 2022, PT Solusi Sinergi Digital Tbk had a market capitalization of 410.06 billion Indonesian rupiah and a return on equity of 23.38%. The company provides digital printing, document management, and other related services in Indonesia.
Summary
ADOBE INC’s first quarter FY2023 results showed total revenue of USD 1.2 billion, a decrease of 1.6% from the same period a year earlier. Net income for the quarter was USD 4.7 billion, representing a 9.4% year-over-year increase. The company’s focus on driving growth and efficiency has enabled it to return strong earnings results, despite the challenging economic environment. Despite the year-over-year decrease in revenue, its strong net income growth will be encouraging to investors.
The company’s financial performance is providing strong indications that ADOBE INC is well positioned to continue to grow over the long term. Investors should consider the company’s strong fundamentals and prospects as they decide whether to invest in the stock.
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