By Denny Jacob
Adobe is set to announce its third-quarter earnings after the market closes Thursday. Here’s what you need to know.
ADJUSTED EARNINGS: The software maker is expected to post earnings of $3.98 a share on an adjusted basis, up from $3.40 a share a year earlier, according to FactSet.
REVENUE: The San Jose, Calif.-based company is expected to report $4.87 billion in revenue compared to $4.43 billion in the year-ago period, according to FactSet.
NET INCOME: Adobe is expected to post $1.32 billion in net income versus $1.14 billion in the prior-year period, according to FactSet.
WHAT TO WATCH
–FIGMA: Investors will be watching to see what Adobe has to say about its proposed $20 billion acquisition of collaborative-design-platform Figma after the European Union’s antitrust enforcer opened an investigation in August over concerns the deal might reduce competition. The EU’s executive body, the European Commission, said at the time that a preliminary investigation indicated the transaction might reduce competition in the global markets for interactive product design software and digital asset creation tools. The commission will also look into whether the deal might foreclose rival providers of interactive product design tools by bundling Figma with Adobe’s creative-cloud products, it said last month.
–FIREFLY: Look to see what Adobe new tidbits the company has to say on Firefly, which was commercially released Wednesday. Firefly is its family of creative generative artificial intelligence models, which are integrated across Adobe Creative Cloud, Adobe Express and Adobe Experience Cloud. While additional details might be sparse in Adobe’s earnings given Wednesday’s announcement, investors will likely have questions during the earnings call so look to see what additional color Adobe offers.
Write to Denny Jacob at email@example.com
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