Earnings

Adobe shares slip 10% on soft sales forecast

In this article

Adobe CEO Shantanu Narayen speaks during an interview with CNBC on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 20, 2024. 
Brendan Mcdermid | Reuters

Adobe shares tumbled as much as 9% in extended trading on Thursday after the design software maker issued strong fiscal first-quarter results but came up slightly short on quarterly revenue guidance.
Here’s how the company did, compared with estimates from analysts polled by LSEG:

  • Earnings per share: $4.48, adjusted, vs. $4.38 expected
  • Revenue: $5.18 billion, vs. $5.14 billion expected

Adobe’s revenue grew 11% year over year in the quarter, which ended on March 1, according to a statement. Net income decreased to $620 million, or $1.36 per share, from $1.25 billion, or $2.71 per share, in the same quarter a year ago.

During the quarter Adobe abandoned its $20 billion acquisition of design software startup Figma after United Kingdom regulators found competitive concerns. The company paid Figma a $1 billion termination fee. And Adobe announced an early version of an artificial intelligence assistant for its Reader and Acrobat apps.

Adobe sees fiscal second-quarter earnings of 4.35 to $4.40 per share on an adjusted basis, with $5.25 billion to $5.30 billion in revenue. The middle of the range implies 9% growth. Analysts polled by LSEG had been looking for $4.38 per share and $5.31 billion in revenue.

The company said it was setting aside $25 billion for share buybacks.

Leaving out the after-hours movement, Adobe shares have fallen 4% so far this year, while the S&P 500 index has gained 8% over the same time period.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

WATCH: Adobe CEO Shantanu Narayen on new AI tools: For us, it’s about driving ‘responsible’ innovation

Articles You May Like

BlackRock expanding in private credit, buys HPS Investment Partners for $12 billion
Eli Lilly’s Zepbound causes greater weight loss than Novo Nordisk’s Wegovy in head-to-head trial
GM expects more than $5 billion impact from China restructuring, including plant closures
Prescription fills for weight loss drugs Zepbound and Wegovy more than doubled in 2024, GoodRx says
‘Moana 2’ snares $221 million in its five-day domestic opening, fueling the biggest Thanksgiving box office of all time

Leave a Reply

Your email address will not be published. Required fields are marked *