Adobe Systems Incorporated (ADBE) releases earnings this week, and traders can look for the stock to trade in its current range between $300-400.
ADBE – Daily Chart
Adobe stock is caught in a tight range with precise levels for traders to target on the earnings release. The $318 level is the downside support and opens the door to the $278.23 support level from November. The $351.75 level is the resistance overhead, with a target of $402.49.
Adobe Stock Prediction & Market Outlook
Adobe is set to announce its first quarter quarterly earnings report on Wednesday. Investors expect to see $3.68 per share in earnings. Last quarter the company beat EPS by $0.10, followed by a 2.99% increase in the share price the next day.
Adobe is one of the largest software companies in the world, picking licensing fees from customers, which form the bulk of its revenue. The focus is on design tools for artists and media professionals. The company also offers technical support and education, with three core business segments.
For the quarter, the consensus estimate for subscription revenue stands at $4.3 billion, indicating a positive change of more than 10% year-over-year. Adobe has consistently beat expectations for this metric over the last few years.
Adobe shares have underperformed the S&P 500 this year but remain slightly in the green year-to-date.
