Adobe Q3 2020 earnings preview

$Adobe Inc(ADBE.US)$ is scheduled to announce their Q3 2020 earnings result on Tuesday this week, September 15, after the close of the U.S. markets. As one of the largest and most diversified software companies in the world, Adobe enables everyone — including students, creative artists, small businesses, government agencies, and the largest global brands — to design and deliver exceptional digital experiences. 

• According to Bloomberg, analysts are forecasting earnings per share of $2.410 for Adobe (17.6% YoY), on revenue of $3.156 billion (11.3% YoY).

• 19 of 28 analysts have a Buy rating on Adobe, while 8 of 28 analysts have a Hold or the equivalent rating. There is 1 analyst rate it a Sell. The average analyst price target $500.94 implying a 3.1% upside.

Faster adoption of digital cloud may be a key highlight when Adobe reports fiscal 3Q20 results on Sept. 15, as more enterprises and consumers embrace electronic documents to conduct business. This could drive strong growth in both Adobe's Acrobat and Sign offerings faster than any other major product category, in our view. Creative cloud may also experience steady gains, driven by increased demand for new content on social platforms, offset somewhat by greater pressure on smaller businesses.

It's Experience Cloud segment, which accounts for about 26% of total sales, may struggle to expand as enterprises delay new advertising and marketing investment. Commerce may be the only bright spot in this unit, driven by greater adoption of digital shopping. 

-Anurag Rana & Gili Naftalovich

Adobe will have a conference call at 5：00 PM EDT Tuesday, September 15.

FedEx Q1 2021 earnings preview

$FedEx Corp(FDX.US)$ is scheduled to announce their Q1 2021 earnings result on Tuesday this week, September 15, after the open of the U.S. markets. The FedEx strategy to compete collectively and operate independently provides a competitive advantage for our company. Our broad portfolio of services allows us to meet the needs of our customers, most of whom use services from two or more of our operating companies.

• According to Bloomberg, analysts are forecasting earnings per share of $2.688 for FedEx (-11.9% YoY), on revenue of $17.552 billion (3% YoY).

• 19 of 31 analysts have a Buy rating on FedEx, while 10 of 31 analysts have a Hold or the equivalent rating. There are 2 analysts rate it a Sell. The average analyst price target $217.37 implying an 8.1% downside.

Momentum created by a surge in demand, coupled with new surcharges, could help make FedEx's fiscal 2021 the year that finally delivers, in our view. This would follow a number of years of underperforming expectations from margin pressure, TNT integration issues and C-suite turnover. It certainly won't be without challenges from the higher costs associated with operating a safe network for employees and customers, expansion to seven-day a week delivery and mix shifts toward more business-to-consumer e-commerce deliveries, which will pressure margins.

FedEx announced a number of temporary surcharges at Express in April due to higher costs from the pandemic. Limited commercial flights and belly capacity have driven air cargo costs higher, as illustrated by September's 57% increase, according to TAC. 

-Lee A Klaskow & Adam Roszkowski

FedEx will have a conference call at 5：30 PM EDT Tuesday, September 15.

Lennar Q3 2020 earnings preview

$Lennar Corp(LEN.US)$is scheduled to announce their Q3 2020 earnings result on Tuesday this week, September 15, after the open of the U.S. markets. Lennar is a home constructionand real estatecompany based in Miami, Florida.

• According to Bloomberg, analysts are forecasting earnings per share of $1.572 for Lennar (-1.2% YoY), on revenue of $5.502 billion (-6.1% YoY).

Source: Bloomberg

• 10 of 20 analysts have a Buy rating on Lennar, while 10 of 20 analysts have a Hold or the equivalent rating. The average analyst price target $80.06 implying a 3.3% upside.

Post-2Q Earnings Outlook: Lennar's 10% drop in net new orders, which included a 7% increase in May (after declines of 10% in March and 29% in April), echoes industry data points suggesting the housing market bottomed in April and has improved sequentially since. The company said strength persisted into June, though guidance still indicates a year-over-year order declines in 3Q and 4Q as markets recover at different speeds, community count falls in the near term and the company focuses on margin amid rising prices. As a result, closings are expected to reach 50,500-51,000 for the year (down from guidance in 4Q of 54,000-55,000), with a gross margin of 21.5%.

-Drew Reading

Lennar will have a conference call at 11：00 AM EDT Tuesday, September 15.