The Best Options Trade For Adobe (ADBE) Earnings

On Tuesday, September 20th, Adobe Systems (ADBE) will release its Q3 earnings results after the bell. The company is a Zacks Rank #3 (Hold), and they were downgraded within the last 30 days due to a downward revision in earnings estimates.

Dave will investigate Adobe’s past earnings, look at what is currently going on with the company, and give us his thoughts on their upcoming earnings announcement.

Furthermore, Dave will uncover some potential options trades for investors looking to make a play on Adobe ahead of earnings.

Adobe in Focus

Adobe Systems Incorporated (NASDAQ:ADBE) is a provider of graphic design, publishing, and imaging software for Web and print production. It offers a market-leading line of application software products for creating, distributing, and managing information of all types. The company license its industry-standard technologies to major hardware manufacturers, software developers, and service providers, and offer integrated software solutions to businesses of all sizes.

Adobe is expected to report earnings this quarter of $0.58 per share according to the Zacks Consensus Estimate. Last quarter, they reported an earnings beat of 2 cents, coming in just above the Zacks Consensus Estimate of $0.53 per share. Adobe has seen an average surprise of 7.57% over the last four quarters.

ADOBE SYSTEMS Price, Consensus and EPS Surprise

ADOBE SYSTEMS Price, Consensus and EPS Surprise | ADOBE SYSTEMS Quote

Adobe is trading around $98 a share near their 52-week high of $104.16 per share.

The Computer-Software industry is in the Top 39% of our Zacks Industry Rank. Considering the growth of business to business software, especially in business and system’s software, then Adobe is in a strong industry with plenty of growth potential.

That said, Adobe is in a very competitive sector including major competitors such as Salesforce.com (NYSE:CRM), Microsoft (NASDAQ:MSFT), and SAP (SAP). Therefore, investors need to keep in mind Adobe is in a difficult sector, and they have to continue to evolve and adapt to stay competitive.

Bottom Line

David will be giving us his earnings predictions when he goes live on Monday.

But how should investors play this company ahead of its report? For insights on the best options trades, make sure to watch Dave Bartosiak at 1pm Central time on Wednesday on our YouTube Channel, and check out our other recent videos for more investing information.

Furthermore, David will be also discussing FedEx's (NYSE:FDX) earnings shortly after he finishes discussing Oracle (NYSE:ORCL)'s earnings.

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