Can Adobe be a good addition? Earnings calendar for the week (09Jun25)

user
KYHBKO
06-08

Earnings Calendar (09Jun25)

I am interested in the earnings releases of Adobe, Oracle, and GameStop.

Let us look into Adobe Systems in detail.

Adobe has a “Strong Buy” technical analysis recommendation. The Analyst’s sentiment is “Buy”. The price target is $488.02, which represents an upside of 17.05%.

10-year performance of Adobe:

  • Revenue grew from $4,796M in 2015 to $21,505M in 2024, over 4x over 10 years. Growth: Revenue grew from $4,796M to $21,505M, with a 10-year CAGR of 17.9%. Growth rates varied, peaking at 24.7% in 2017 and slowing to 10.8% in 2024, showing consistent expansion.

  • Operating Margin grew from 18.8% (2015) to 36.0% (2024). Trend: Operating margin improved significantly from 18.8% to 36.0%, with a notable rise from 25.5% in 2016 to a peak of 34.6% in 2022, reflecting enhanced profitability over time.

  • Earnings Per Share (EPS) grew from $1.24 (2015) to $12.36 (2024). EPS increased steadily from $1.24 to $12.36, with a 10-year CAGR of 37.0%. Growth was strong (e.g., 55.8% in 2018), with a minor dip of -7.5% in 2021, indicating robust earnings growth.

  • The EV/FCF ratio is 19.2, and FCF growth is 21.3% (10-year CAGR). This suggests solid cash flow generation, supporting operational and investment needs.

  • Direct net assets aren’t listed, but Assets growth is 10.9% (10-year CAGR), and Debt/Assets is low at 0.2, with Assets/Equity at 1.8 and Debt/Equity at 0.3. This indicates a strong balance sheet with manageable debt and growing assets.

Adobe demonstrated strong revenue growth (17.9% compound annual growth rate, or CAGR) and excellent earnings per share (EPS) growth (37.0% CAGR), with operating margins improving from 18.8% to 36.0%. FCF grew steadily at 21.3% CAGR, and the balance sheet remained healthy with low debt relative to assets. Overall, Adobe shows consistent financial improvement over the decade.

With the above, Adobe should be a good addition to our portfolio. Let us research before investing. Let us factor in an adequate margin of safety (MOS) before we invest.

@TigerStars

$Adobe(ADBE)$

May is Done! How Do You Expect June Movement?
S&P 500 has risen 6.15% this month, marking its best monthly gain of the year. After April’s sell-off and May’s surge, did you make any money? There’s a saying: “Sell in May and go away.” Will you follow it? Interestingly, the market clearly ignored that advice last year. However, June hasn’t historically been a standout month in terms of performance. Historically, the market has NEVER made the top for the year in the month of June. (since 1980) Will you continue to hold or take profits? Will June defy seasonal patterns, or see a temporary cooldown?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Merle Ted
    06-09
    Merle Ted
    Adobe will lose a lots of business to AI and Automation ?

    • KYHBKO
      it is possible. for now, Adobe had some edge.
  • Mess0M
    06-09
    Mess0M
    Great insights on Adobe! Looks promising! [Wow]
    • KYHBKO
      thanks. an attractive offering indeed
  • Venus Reade
    06-09
    Venus Reade
    From 700 to now 400. Looks rough
    • KYHBKO
      it is good to monitor
  • popzy
    06-09
    popzy
    Solid analysis
    • KYHBKO
      you are welcome. all the best
Leave a comment
8
2