What To Expect From Adobe On Thursday

Adobe Inc.
ADBE
is scheduled to report earnings after Thursday’s close. The stock just hit a record high of $561.36/share and is currently trading just below that level. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview:

The company is expected to report a gain of $2.81/share on $3.73 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $2.94/share. The Whisper number is the Street’s unofficial view on earnings.

A Closer Look At The Fundamentals:

The company is growing nicely and is firing on all cylinders as the world moves past the pandemic. During the pandemic, the company managed to grow both sales and earnings by double digits and is expected to continue to grow nicely in 2021 and 2022.

A Closer Look At The Technicals:

Technically, the stock is acting very strong as it just broke out of a very long base. The stock just hit a new record high which bodes well for the bulls. It also broke out on heavy volume last week which is a welcome sign.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.